Lucid Motors, which is setting new standards for sustainable mobility with its advanced luxury electric cars, and Churchill Capital Corp IV (CCIV), a special purpose acquisition company, announced today that they have entered into a definitive merger agreement.
CCIV and Lucid are combining at a transaction equity value of $11.75 billion (£8.4 billion/€9.7 billion). The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion (£17.2 billion/€19.8 billion) at the private investment in public equity (PIPE) offer price of $15.00 (£10.75/€12.36) per share. This will provide Lucid with approximately $4.4 billion (£3.15 billion/€3.6 billion) in cash assuming no existing CCIV shares are redeemed for cash at closing.
Lucid going public will help them to accelerate into the next phase of their growth as the brand works towards the launch of the new pure-electric luxury saloon, Lucid Air, in 2021. This will be followed by Lucid’s Gravity performance luxury sports utility vehicle (SUV) in 2023.
Financing from the transaction will also be used to support the expansion of Lucid’s manufacturing facility in Arizona. This is the first greenfield purpose-built electric car manufacturing facility in North America, and is already operational for pre-production builds of the Lucid Air. Scheduled to expand over three phases in the coming years, Lucid’s Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale.
Peter Rawlinson, CEO and CTO of Lucid, said: “Lucid is proud to be leading a new era of high-technology, high-efficiency zero-emission transportation. Through a ground-up rethinking of how electric vehicles are designed, our in-house-developed, race-proven technology and meticulous engineering have enabled industry-leading powertrain efficiency and new levels of performance.
“This transaction further enables the realisation of our vision to supply Lucid’s advanced electric vehicle technologies to third parties. This includes other automotive manufacturers as well as offer energy storage solutions in the residential, commercial and utility segments.”
Michael Klein, chairman and CEO of CCIV, said: “CCIV believes that Lucid’s superior and proven technology backed by clear demand for a sustainable electric vehicle make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability.
“We are pleased to partner with Peter and the rest of Lucid’s leadership team as it delivers the highly anticipated Lucid Air to market later this year, promising significant disruption to the electric vehicle market and creating thousands of jobs across the US.”
Lucid is setting new standards in performance, range and efficiency, appealing both to customers and investors committed to a zero-emission future. Their new Lucid Air has a projected range of over 500 miles (800km) on a single charge, which is ahead of all competitors on the market today. This sort of distance will help to quash any range anxieties of any potential electric car buyers and help convince people to move to clean driving.
Lucid’s growth will continue to benefit the communities in which it operates. This is namely California where the company is headquartered, and in Arizona where the company has built its vehicle manufacturing facility from the ground up, as well as its in-house electric vehicle powertrain manufacturing facility.
Additionally, with directly-owned retail locations already open in California and Florida, Lucid will continue to expand its retail and service footprint across the US throughout 2021. Lucid currently employs nearly 2,000 people in the States and intends to continue growing quickly to support the company’s ramp in operations. Lucid expects to have 3,000 employees in the US by the end of 2022.
Peter Rawlinson will continue to lead Lucid along with the rest of the company’s seasoned leadership team. Churchill’s leadership team and group of operating partners will actively facilitate key introductions and relationships and provide product, design, and industry insights.