Fledgling electric vehicle company Lucid Motors Inc. has agreed to go public by merging with unique-purpose acquisition company Churchill Capital Corp IV in one of the largest ever deals involving a SPAC, the companies said on Monday.
The deal would inject $4.4 billion into the Bay Area-based automaker and value Lucid a $24 billion, a huge amount for a company that has yet to begin production of its car.
Lucid Chief Executive Peter Rawlingson said the company is going public “to accelerate into the next phase of our growth.” The company plans to initiate deliveries of its first car, a $169,000 ultra-luxury all-electric sedan called the Air, in the second half of this year.
Stock investors in Churchill have even higher hopes. Its stock, trading roughly $40 in after hours trading on Monday, implied a valuation for Lucid of more than $65 billion. That compares with the roughly $75 billion market capitalization of General Motors Co., which posted a pretax profit of $9.7 billion last year while selling roughly 6.8 million vehicles globally.