Electric vehicle startup Lucid Motors will merge with the Churchill Capital IV Corp to go public at a $24B valuation. This is the largest ever SPAC merger for an electric vehicle startup.
- The merger will generate $4.4B of proceeds for Lucid. The funds will be used to grow its factory in Arizona and bring two vehicles to market.
- Lucid will begin producing and delivering its Lucid Air in North America during the second half of this year. The vehicle will arrive in Europe next year and China in 2023.
- The Lucid Gravity, a performance luxury SUV, will arrive in North America in 2023.
- Both the Air and Gravity will be produced at Lucid's $700M factory in Casa Grande, Ariz., which last year completed the first phase of construction. Upon completion, it will be able to produce 365,000 vehicles annually.
- Shares of Churchill had surged by 470% since January when rumors of a potential merger broke. However, they were down nearly 40% on Tuesday after the announcement.
- CEO Peter Rawlinson blamed the decline on media speculation that Lucid would be valued between $12B and $15B, which created confusion among investors.