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Lucid plans to target the very high end of the automotive market.
Courtesy of Lucid Motors
The potential merger between a special purpose acquisition company
Churchill Capital Corp IV
and EV start-up Lucid Motors seems to be one of Wall Street’s worst-kept secrets.
Churchill stock (ticker: CCIV) is on the rise again after another report that a merger announcement was imminent. Yet neither company is ready to confirm the deal.
Churchill stock is up about 30%, to $ 52, Tuesday at noon. The shares traded below $ 37 earlier in the day. The stock has been on hold for small periods due to volatility.
The deal is said to value Lucid at around $ 12 billion. Churchill has about $ 2 billion in cash on her books, which means she will end up with about 17% of the new company. This is a very rough guide and will change when, or if, the details of the transaction appear.
With Churchill shares at $ 52, Lucid’s implied and updated value could be over $ 40 billion. Most PSPC transactions are carried out on the basis of the unit price of $ 10 at which PSPCs issue shares.
It’s just not clear whether the $ 12 billion figure matches the current valuation or the valuation at which the deal is made. There are too few details. Churchill and Lucid were not immediately available to comment on today’s report.
Manufacturer EV
Fisker
(FSR), by comparison, is valued at around $ 6 billion, based on its 294 million fully diluted shares outstanding. Fisker plans to offer an SUV of around $ 40,000 on sale around 2022.
Lucid plans to target the very high end of the automotive market. It’ll start with an ambitious EV model that could cost over $ 165,000 and boast 1080 horsepower, quick charge times, and over 500 miles of range on a single charge. The first high-end Lucids could hit the streets later this year before the company produces low-end luxury cars in 2022.
Expectations for Lucid products are high. Churchill’s stock is up more than 400% over the past three months, crushing comparable returns from the
S&P 500
and
Dow Jones Industrial Average.
Write to Al Root at [email protected]
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