Lucid to go public by using most significant SPAC offer to day

A string of electric-vehicle startups have all long gone community in the past yr through a so-known as “reverse merger” with a distinctive goal acquisition company (SPAC) whose shares are currently stated, and the most recent to sign up for the celebration is Lucid.

Lucid agreed on Monday to a merger with Churchill Cash Corp IV, whose shares trade on the New York Stock Exchange. The deal will see Lucid receive about $4.4 billion in income and value the enterprise at approximately $24 billion, creating this the major SPAC deal to day.

About 85% of Lucid is currently owned by Saudi Arabia’s sovereign wealth fund, recognised as the Community Financial commitment Fund, or PIF for short. Soon after the closing of the deal, the PIF is predicted to still hold about 62% of the corporation.

Lucid Motors AMP-1 factory, Casa Grande, Arizona

Lucid Motors AMP-1 factory, Casa Grande, Arizona

Lucid has its headquarters in Newark, California, and a plant in Casa Grande, Arizona, which is owing to start churning out the Air sedan later on this year. The company has also teased the Gravity SUV and may sooner or later assemble a plant in Saudi Arabia. It has about 2,000 employees presently in the U.S. and will insert 3,000 additional by way of 2022.

Heading Lucid is Peter Rawlinson who was an early engineer for the Tesla Product S. In a assertion, Rawlinson reported the new funding will aid Lucid expand its Arizona plant as nicely as build new enterprises for licensing technologies and offering energy storage answers for residential, professional and utility markets.

A string of EV startups have all absent general public in the earlier calendar year through reverse mergers, thus staying away from the complexity (particularly regulatory necessities) of launching an preliminary public offering. The checklist involves Canoo, Faraday Potential, Fisker, Lordstown Motors, Nikola, and REE. Another EV startup, Mullen Technologies, also strategies to go community by means of a reverse merger, whilst Rivian is reportedly planning to do it the conventional way of launching an IPO.