CCIV and Lucid are combining at a transaction equity value of $11.75 billion. 22, 2021 /PRNewswire/ - Lucid Motors ("Lucid"), which is setting new standards for sustainable mobility with its advanced luxury EVs, and Churchill Capital Corp IV (NYSE: CCIV) ("CCIV" or "Churchill"), a special purpose acquisition company, announced today that they have entered into a definitive merger agreement. Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added in the U.S. Peter Rawlinson will continue to lead Lucid as CEO and CTO This transaction includes the largest ever SPAC-related common stock PIPE PIPE investment anchored by the Public Investment Fund (PIF) as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management, LLC The PIPE is priced at $15.00 per share (a 50% premium to CCIV's net asset value) with an implied pro forma equity value of $24 billion The transaction includes an approximately $2.1 billion cash contribution by CCIV and a $2.5 billion, fully committed PIPE with an investor lock-up provision that binds holders well beyond closing. CCIV and Lucid are combining at a transaction equity value of $11.75 billion Transaction provides additional growth capital as Lucid brings the over 500-mile range Lucid Air luxury electric sedan to market and expands rapidly to offer a broad range of electric vehicle products powered by Lucid's proprietary electric powertrain technology
Lucid's mission is to inspire the adoption of sustainable transportation by creating the most captivating luxury electric vehicles centered around the human experience (Side note: If you want to play here, buy Zillow (NASDAQ: Z) instead).Lucid Motors to Go Public in Merger with Churchill Capital Corp IV, Bolstering Lucid's Vision to Redefine Luxury, Performance and Efficiency in the Sustainable Electric Vehicle Market This company promised to change the real estate market. Take SPAC poster child and Cathie Wood favorite Opendoor Technologies (NASDAQ: OPEN) for example. Just quickly scanning through the ridiculously hot special-purpose acquisition company (SPAC) world, we can see a long list of self-proclaimed “game changers.” Almost all of these have met their (market) maker. Upward ‘mo is a good thing … until it isn’t.Īt a certain price, any stock will fail to keep up with its expectations. (Hats off to Nathan Rawlins, Lucid’s Chief Marketing Officer, who has run successful campaigns at companies such as Jive Software).Īs a long-term, fundamentals-based investor, this is how I think about momentum. All of that’s amplified with a well-timed publicity blitz. Within CCIV social media circles, the talk is purely deal speculation and excitement. In fact, the 18% move in CCIV shares over the past month isn’t based on any incremental information. It’s this desire to find the “next Tesla” that’s responsible for much of the recent move in CCIV stock. Tesla’s current $682 stock price also makes it prohibitively expensive for many retail investors - another reason why Lucid’s story is so compelling right now. With electric vehicles poised to cannibalize a $5 trillion global automotive industry, there’s more than enough room for a second player to take a bite out of Tesla (NASDAQ: TSLA).
For the record, Rivian Automotive claims 30,000 reservations for its electric SUV.īut, if we’ve learned anything from the blow-up at Lordstown Motors (NASDAQ: RIDE), it’s to take numbers like these with a grain of salt. That’s certainly a good indicator of interest, especially for a $161,500 car. Customers are plunking down as much as $7,000 for a spot on the waiting list. In fact, CEO Peter Rawlinson confirmed 10,000 reservations for the Dream. Lucid’s “post-luxury” aspirational brand promises to re-define the electric vehicle (EV) market as a “two horse race.” The meticulous attention to detail put into other areas also adds to the California Dreamin’ (think brushed aluminum finishes, ribbed turbines, a beautiful paneled ceiling, among other nuances). Lucid’s Air Dream evokes pure California vibes thanks to its beautifully sculpted body. (Notice I didn’t say sales? I’ll discuss that later). There also seems to be a lot of interest. Lucid is pleased with its initial quality validation prototypes and still targets production of 557 cars in late 2021.
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