Lucid Motors is heading public in a significant SPAC merger

Lucid Motors is going public in a major SPAC merger

Lucid Motors is heading to grow to be a publicly-traded firm on the New York Inventory Exchange in a deal that will depart the electric powered car startup with $4.4 billion in dollars. The California startup, which is majority-owned by Saudi Arabia’s sovereign prosperity fund, ideas to commence delivery its initial luxurious electric vehicle — the 500-mile range Air sedan — afterwards this yr. An electrical SUV is slated to adhere to in 2023.

A lot like quite a few other startups in the automotive house have completed about the past yr, Lucid Motors is skipping the conventional route to getting a publicly-traded firm and is instead merging with a specific function acquisition organization, or SPAC. Exclusively, Lucid Motors is merging with Churchill Capital Corp IV, which is currently detailed on the NYSE. Bloomberg to start with reported that Lucid Motors and Churchill — which is run by investor Michael Klein, who has architected bargains for Saudi Arabia in the previous — were in talks back again in January.

About $2.1 billion of that income will arrive from Churchill. Some $2.5 billion will appear from a new round of funding operating concurrently with the merger, which is anchored by Saudi Arabia but features BlackRock, Fidelity Administration, and other folks. The deal values Lucid Motors at $24 billion.

Led by Peter Rawlinson, a previous Tesla engineer who helped provide the Design S to lifestyle, Lucid Motors was launched way back in 2007 as Atieva. It was in the beginning focused on battery know-how, but in the end pivoted into starting to be an electric powered vehicle startup a number of a long time in the past. It has considering the fact that grown to a lot more than 2,000 personnel and begun construction on a $700 million manufacturing facility in Arizona in which the Air will be developed.