In a statement luxury electric vehicle maker Lucid Motors stated, it will go public by merging with blank-check firm Churchill Capital IV Corp in a deal that values the combined company at $11.75 billion.
Incidentally, CCIV, which has the backing of Michael Klein, and new private investors are getting shares at different prices: the new private investors are paying a premium.
The publicly traded shares of CCIV fell nearly a third to $40.35 in volatile extended trading, giving the merged company a market capitalization of about $64 billion. As a comparison, General Motors Co’s market capitalization is around $76 billion.
Lucid Motors’ deal with CCIV includes a private investment of $2.5 billion by Saudi Arabia’s Public Investment Fund, with the funds being managed by BlackRock and others.
In a statement Lucid said, it is on track to commence production and deliveries in North America during the second half of this year with Lucid Air – its first luxury sedan.
Lucid’s manufacturing plant in Arizona has a capacity of 34,000 units per year and after it completes a full ramp up and the production capacity will expand to 365,000 units.
Lucid Air is priced at $77,400 and is slated to have a drive range of 500-mile (805 km).
Following Lucid disclosing the price of its sedan, Elon Musk, Tesla’s CEO announced a price cut to its flagship Model S sedan tweeting, “The gauntlet has been thrown down!”
Lucid Motors was founded by a former Tesla executive Bernard Tse and entrepreneur Sam Weng in 2007 and received initial funding from LeEco, a Chinese technology company.
In July 2020 CCIV went public in a $1.8 billion IPO.