Lucid Motors and the SPAC Churchill Capital Corp. IV (CCIV) Are Finally Merging – Transaction Values the EV Company at $24 Billion

Lucid Motors, the producer of the posh Air EV, is now formally merging with the Particular Objective Acquisition Firm (SPAC), Churchill Capital Corp. IV (NYSE:CCIV), laying to relaxation the rumor frenzy that had gripped the SPAC sphere since early January.

As per the details revealed, Lucid Motors shall be value $24 billion and may have entry to over $4 billion in money, together with $2.1 billion in belief and PIPE investments of $2.5 billion. Curiously, the PIPE is priced at $15.00 per share (a 50 % premium to CCIV’s internet asset worth). Readers ought to notice that we had been persistently stating that that Lucid Motors would command a a lot greater valuation than a few of the different figures floating round. That prognostication has now panned out.

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As acknowledged earlier, ever since Bloomberg broke the information of a potential merger between Lucid Motors and Churchill Capital, shareholders and analysts alike have been scrutinizing each minute growth to gauge the probability of a enterprise mixture deal materializing. We reported on the thirteenth of January that new circumstantial proof appeared to extend the probability of this merger. To wit, Lucid Motors opened job vacancies for 3 new posts that primarily cater to a public firm as an alternative of a non-public one. These included the emptiness for an SEC Reporting Supervisor, a Director of Investor Relations, and an Analyst, Investor Relations. Furthermore, throughout a hearth chat hosted on the 2021 ICR Digital Convention, Churchill Capital’s CEO – M. Klein – refused to touch upon the SPAC’s potential merger with Lucid Motors. Whereas highlighting the importance of this growth, we had famous that Mr. Klein was certain by the principles of the SEC, which stipulate no such affirmation till a Letter of Intent (LOI) has been duly filed with the regulator. The truth that Mr. Klein refused to outrightly dismiss the merger rumor was, in truth, a tacit admission of ongoing negotiations. Lastly, Andrew Liveris types a vital hyperlink between Lucid Motors and Churchill Capital. To wit, Mr. Liveris is just not solely the Chairman of the Lucid Board of Directors but additionally an operating partner at Churchill Capital. This commonality served to spice up the prospects of an eventual merger DA.

Then, in late January, studies emerged that the non-public fairness agency TPG had entered into exclusive acquisition talks with DirecTV. This growth solely served to reinforce the percentages of an eventual merger between Churchill Capital and Lucid Motors, significantly in mild of the truth that Churchill Capital was beforehand thought of a number one contender for a merger with DirecTV. Extra lately, Lucid Motors utilized to reserve the company identify – Lucid Motors Company.

In February, an replace on the Bloomberg terminal boosted the probabilities for a deal. As per the Bloomberg terminal, a consortium of buyers, led by the VC agency Venrock Associates, was negotiating a sale of its Lucid stake to Churchill Capital. Readers ought to notice that Venrock Associates is likely one of the oldest buyers in Lucid Motors, having participated within the firm’s Series B financing in 2009. In that spherical, Lucid Motors – referred to as Atieva again then – raised $7.1 million from Venrock, the China Atmosphere Fund, and many others.

With the settlement out of the way in which now, buyers will eagerly await the closure of the merger settlement between Lucid Motors and Churchill Capital. For the uninitiated, the Lucid Air is a luxurious EV sedan that can retail in 4 variations: the Air, the Air Touring, the Air Grand Touring, and the Air Dream Version. The bottom mannequin will begin retailing at $69,900 (with the incorporation of federal tax credit) and can supply a variety of 406 miles together with a 0-60 mph acceleration in 2.5 seconds. The highest mannequin will carry a price ticket of $169,000 and can supply 1,080 horsepower together with a variety of 517 miles. The Air’s headline options embody a really spacious and opulent inside and an ultrafast 900V+ battery structure that’s appropriate with the CCS commonplace, making it potential to take in a 300-mile vary with only a 20-minute fast-charge.

Lucid Motors will manufacture its Air EV on the AMP-1 manufacturing unit in Casa Grande, Arizona. The power may have an preliminary manufacturing capability of 30,000 items per 12 months. Finally, the corporate plans to extend this capability to 400,000 items each year. Deliveries are anticipated to commence within the spring of 2021. Other than its facility in Arizona, Lucid Motors can also be trying to set up a producing facility in Saudi Arabia. Readers ought to notice that the Saudi Public Funding Fund (PIF) acquired a controlling stake within the firm for north of $1 billion in 2019.