Electric vehicle company Lucid Motors is finalizing its deal with a SPAC

Electric vehicle company Lucid Motors is finalizing its deal with a SPAC

Lucid Motors and a special purpose acquisition company called Churchill Capital IV revealed that they had reached an agreement allowing them to go public. This SPAC is like a blank check company whose purpose is to finance the operations of the company it is acquiring. The contract will price Lucid Motors at about $24 billion. This price will ensure the private investment in public equity offer price is $15.00 for every share. The deal brings about $4.4 billion in cash with a transaction equity value of $11.75 billion. An additional $2.5 billion will act as a binding value for the deal.

Speculations had characterized the deal for quite some time, stirring up the CXIV stock. Churchill Capital IV and Michael Klein’s shares rose by 30% after these rumours filling the market. Another rise came after Bloomberg gave a report outlining the advantages that this deal might have for the investors. The electric vehicle company has financial support from a Saudi Arabia federal wealth fund. This SPAC with Churchill Capital IV is among the many that have characterized the electric vehicle industry, with the likes of Nikola and Fisker leading this quest.

Lucid Motors has been observing the rivalry in the electric vehicle sedan sector to ensure that it comes up with competitive models. The chief executive of Lucid Motors, Peter Rawlinson, applied the experience he acquired at Tesla after participating in the development of Model S. The executive was a chief technical officer for the company and therefore understood the working around this program. Lucid Motors developed its first production centre at Casa Grande in Arizona. The company is happy that it can finally unveil its Lucid Air model on a commercial scale. The executive of the company stated that they would be opening new branches to host the mass production of its sedan.

Rawlinson explained that this model must be a top-notch entity to describe the luxurious nature of the brand. He stated that he believes the first model defines how the consumers and the market will look like in future. The company hopes that it can penetrate the market by going public and prove that its technologies are worth a try. The CEO pointed out that the investment in Lucid Air will help it grow as a competitive brand and open doors for the development of another model. Additionally, the company will be showcasing the model in its New York City exhibition centre to attract more people.

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