Lucid Motors has confirmed a deal with the SPAC Churchill Capital Corp IV "CCIV" (led by Michael Klein) at an equity value of $24 billion, making the agreement the biggest SPAC deal ever.
Lucid Motors is a California-based electric vehicle automaker founded in 2007 specializing in luxury cars. The company is currently developing the highly anticipated "Lucid Air" which is expected to debut by the end of the year.
Lucid Motors is going after Tesla (TSLA) with several ex-Tesla employees on Lucid's leadership team, including CEO, Peter Rawlinson and VP of Hardware Engineering, Eric Bach.
The competition in the EV industry is heating up and Lucid’s expected debut in the public markets will only intensify the competition. The SPAC deal will provide $4.4 billion in cash for Lucid, helping the company to ramp up operations.
Despite weeks of rallying in anticipation, upon the announcement of the deal, Churchill Capital Corp IV’s shares fell over 30% after-hours. A blow to investors who bought in within the last week and didn’t catch the initial run-up.