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The deal left the company with a market cap of $ 9.17 billion, at the time of writing, and will give Lucid Motors more than $ 4 billion in cash. The deal will be used to expand the Lucid plant in Arizona, said the company, which is expected to eventually be able to produce 365,000 vehicles per year.
Lucid tries to compete directly with Tesla. Peter Rawlinson, CEO of Lucid, contributed to the development of the Model S sedan while working at Tesla from 2009 to 2012. Tesla, the world’s most valuable automaker by market capitalization, sells the Model S, a sedan of electric luxury that starts at $ 73,990, with long-range variants also having a range of just over 500 miles.
CCIV is a Special Purpose Acquisition Company, or SPAC, which is a shell company whose sole purpose is to purchase or merge with a private company in order to go public without a traditional initial public offering. Many companies have chosen to go public over the past year through PSPCs instead of traditional IPOs, which typically invite further scrutiny from investors and regulators.
The Lucid merger has been widely anticipated, pushing the price of CCIV shares up by more than 470% since the start of 2021. After the transaction was announced, the CCIV share price has fallen by more than 40% .
Lucid is the latest electric automaker to go public through a SPAC merger.
Arrival of EV start-ups, Nikola and Fisker have all taken advantage of investors’ seemingly endless appetite for PSPCs.
PSPC raised $ 76 billion last year, a multiplied by six compared to 2019.
“A few years ago, PSPC was a relatively sleepy corner of the market. It is no longer the case,” said David Gallers, co-founder and managing partner of Wealthspring, a company that invests in PSPC. “Billion dollar unicorns are adopting him now.”
With reporting by Charles Riley
Correction: An earlier version of this story misidentified the company’s market capitalization.
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