Lucid Motors on Monday agreed to go public by merging with Churchill Capital IV Corp, a blank-check agency backed by Wall Avenue dealmaker and former Citigroup banker Michael Klein, in a deal that valued the mixed firm at $11.75 billion.
The take care of Churchill Capital IV Corp features a non-public funding of $2.5 billion from Saudi Arabia’s Public Funding Fund, funds managed by BlackRock and others. It’s anticipated to supply Lucid with $4.6 billion in proceeds.
The California-based EV maker had stated in August that it goals to start out promoting its first luxurious mannequin, Lucid Air, early this yr. The electrical sedan can be the primary to realize a 500-mile driving vary, the corporate stated. (https://reut.rs/3nBdh0I)
Lucid Air has a beginning worth of $77,400. However it could come right down to $69,900 as prospects could also be eligible for a federal tax credit score of $7,500.
After the posh electrical sedan was priced, Tesla Chief Govt Elon Musk had in October final yr introduced a reduce within the worth of Mannequin S Sedan. He tweeted, “The gauntlet has been thrown down!”
It was final yr that different EV makers akin to Nikola Corp and Fisker Inc went public by means of mergers with blank-check corporations. Los Angeles-based EV agency Faraday Future Inc additionally introduced a take care of a blank-check firm to go public earlier this yr.
Based in 2007 by former Tesla Inc government Bernard Tse and entrepreneur Sam Weng as Atieva Inc, Lucid had acquired preliminary funding from Chinese language know-how firm LeEco, which is managed by Faraday Future founder Jia Yueting.
Churchill capital Corp IV, the fourth particular goal acquisition firm (SPAC) backed by former Citigroup Inc banker Michael Klein, went public in a $1.8 billion preliminary public providing (IPO) in July final yr.
SPACs are shell corporations which elevate cash by means of an IPO to take one other firm public inside two years.
Such mergers have change into a preferred options for corporations seeking to go public, with over 200 SPAC offers collectively elevating greater than $70 billion in fairness final yr.
