Former Tesla Engineer’s EV Business, Lucid Motors, to Go Public by $11.8 Billion SPAC Deal

By Mariliana Fotopoulou Tuesday, February 23, 2021

Lucid Motors, an electric vehicle (EV) company, said it will go public at an $11.75 billion combined equity business valuation and $24 billion pro forma equity value via a reverse merger with a special purpose acquisition company, or SPAC.

Lucid Motors vehicle model.

Investing in EV Growth

This will be the largest ever deal between a SPAC and an electric vehicle company. The SPAC, in this case, is Churchill Capital Corp IV (CCIV), founded by renowned investment banker Michael Klein.

Previous similar deals between SPACs and EV businesses, including Nikola, Fisker, and Lordstown Motors, reached pro forma valuations of no more than $4 billion. Lucid’s SPAC deal will provide it with around $4.4 billion in cash, which will allow the company to invest in growth in its Arizona plant.

Shares of Churchill Capital Corp IV plummeted sharply in pre-open trading Tuesday after soaring about 550% since early January on talks of a merger with Lucid.

The deal with CCIV includes a total investment of roughly $4.6 billion, $2.1 billion of which will be financed in cash from CCIV, and a $2.5 billion fully committed PIPE at $15 per share by Saudi Arabia’s sovereign wealth fund and funds and accounts administered by BlackRock, Fidelity, and more.

The EV company is led by former Tesla engineering executive Peter Rawlinson, who joined Lucid as CTO in 2013 before stepping up as CEO in April 2019. Rawlinson will keep his current position after the deal with CCIV is completed, the companies said. The California-based EV business is expected to launch its first luxury sedan named “Air” this spring.

Last year, Rawlinson said SPAC deals allow companies to generate quick capital but not enough money to ensure in-house EV production. For this reason, Lucid’s rival Fisker was forced to seek contract manufacturers.

Before it announced the SPAC deal, Rawlinson said the company had enough capital to produce the “Air” at its factory in Arizona. The EV business will use the proceeds from the deal to facilitate its expansion plans. Rawlinson said he believes “Air” will serve as a catalyst for a series of upcoming Lucid EVs, including the production of an SUV, which is expected to begin in 2023.

The EV company currently has around 2,000 employees, with 3,000 more to be added in the United States by the end of 2022. The business is planning to deliver 20,000 EV units in 2022 and 251,000 in 2026.


EV business Lucid Motors will go public at an $11.75 billion combined equity business through a SPAC deal with Michael Klein’s Churchill Capital Corp IV.

About the Author

Headshot for author Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.

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