Lucid Motors, currently building pre-production zero-emission vehicles in its factory on the west side of Casa Grande, is merging with a special purpose acquisition company in a deal valued at $11.75 billion, through which it will become a publicly-traded company.
Its deal with Churchill Capital IV Corp (CCIV) is expected to raise an initial $4.4 billion in cash for the manufacturer. When the merger was announced on Feb. 22, representatives said it was expected to close by July 1, after which Churchill Capital IV’s listing on the NYSE will become Lucid’s.
Just under half of the cash will come from the largest private investment by public equity offering ever made by a special acquisition company: $2.1 billion.
Based in New York, Churchill Capital IV Corp was formed as a special purpose acquisition company and made its initial public offering in July 2020. Chairman and CEO Michael Klein said, “CCIV believes that Lucid’s superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability.”
Lucid’s merger is similar to Nikola Corp.’s from last year. The electric- and hydrogen-fueled truck producer announced its $3.3 billion combination with VectoIQ in March 2020, and it closed in June.
Lucid employs 2,000 people and is planning to bring on 3,000 more by the end of 2022. It is now poised to begin making its luxury Lucid Air sedan for the market later this year, a target that was rolled back from early 2021 after encountering supply-chain issues and other delays.
“We won’t be able to start delivering Lucid Air this spring at the level of quality we insist on providing,” Lucid CEO Peter Rawlinson said in a statement shortly after the merger agreement was confirmed.
The company is taking reservations on its website and at six Lucid Studios. More are coming soon, including the first Arizona location at Scottsdale Fashion Square. Prices for its four Lucid Air trims range from $69,900 to $161,500, with the most expensive versions expected to be shipped first.