Move over Tesla. Electric vehicle firm Lucid Motors plans to go public at an $11.75 billion U.S. valuation through a special purpose acquisition company (SPAC) deal.
The deal between Newark, California-based Lucid and blank-check company Churchill Capital Corp IV (NYSE:CCIV) is the largest in a series of such deals involving electric vehicle companies. Previous SPAC deals with electric vehicle start-ups such as Nikola, Fisker and Lordstown Motors had valuations of less than $4 billion U.S.
But Lucid Motors is farther along than other companies. Already in production, Lucid Motors is set to deliver its first vehicle – a luxury sedan called the “Air” – this spring. Going public will generate about $4.4 billion U.S. in cash for Lucid’s expansion plans, including its current factory in Arizona.
Lucid is led by ex-Tesla engineering executive and automotive veteran Peter Rawlinson, who joined the company as chief technology officer in 2013 before becoming chief executive officer in April 2019. He will continue in those roles following the expected closure of the deal in the second quarter, according to the companies.
The Air is the first in a lineup of all-electric vehicles to be produced by Lucid Motors, including an SUV that’s scheduled to start production in 2023. Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added in the U.S. domestically by the end of 2022, according to the company.
Shares of CCIV fell 30% to $40 in extended trading after the SPAC deal with Lucid Motors was formally announced.