
Luxury electric car maker Lucid Motors on Monday agreed to go public by slotxo merging with non-audit firm Churchill Capital IV Corp in a deal that valued the company together at $ 11.75 billion.Lucid, run by former Tesla engineers, is the latest to enter the initial public offering market, with investors in the EV sector driven by the rise of Tesla Inc and with emissions regulations. More severe in Europe and elsewhere.Other notable players in the sector went public through a merger with the Special Acquisition Company (SPAC) last year. While some deals like Fisker delivered well, others, like Nikola, offered short-term gains.
CCIV's publicly traded shares fell nearly a third to $ 40.35 in volatile long-term trading, giving the combined company a market capitalization of about $ 64 billion. By comparison, General Motors Co is worth an estimated $ 76 billion.Lucid said it was going to begin production and delivery in North America in the second half of this year with the Lucid Air, the first luxury sedan. It was previously said to begin deliveries in the spring of 2021.Lucid, which plans to build the vehicles at the Arizona plant, aims to deliver 20,000 cars by 2022 and 251,000 by 2026 by adding other models such as electric sports cars.
With a starting price of $ 77,400, the sedan is set to be the first to have a driving range of 500 miles (805 km).After Lucid pricing the sedan, Tesla chief Elon Musk announced a price cut for the flagship Model S sedan. "The gloves have been thrown!" He tweeted.CCIV, backed by Wall Street dealmaker and new Citigroup banker Michael Klein, has received shares at different prices by new private equity investors paying a premium. Protect The deal with CCIV includes a $ 2.5 billion private investment from Saudi Arabia's public investment fund, BlackRock-managed funds and others.