As of this writing, this transaction gives the company a market capitalization of $9.17 billion and will provide Lucid Motors with more than $4 billion in cash. The company said the transaction will be used to expand Lucid’s Arizona plant, which is ultimately expected to be able to produce 365,000 vehicles per year.
Lucid is trying to directly compete with Tesla. Lucid CEO Peter Rawlinson (Peter Rawlinson) assisted in the development of the Model S car from 2009 to 2012 while working at Tesla.By market value, Tesla, the world’s most valuable automaker, sells Model S, a luxury electric sedan that starts at $73,990, and the long-range variant also has a range of more than 500 miles.
CCIV is a special purpose acquisition company, SPAC, which is a shell company whose sole purpose is to purchase or merge with a private company in order to list it without a traditional initial public offering. In the past year, many companies have chosen to use SPACs instead of traditional IPOs for public offerings, which usually arouses more scrutiny by investors and regulators.
Since the beginning of 2021, the Lucid merger has been highly anticipated, which has increased CCIV’s share price by more than 470%. After the transaction was announced, CCIV’s stock price plummeted by more than 40%.
Lucid is the latest electric car manufacturer to go public through the merger of SPACs.
Electric car startups arrive, Nikola Both Fisker and Fisker took advantage of investors’ seemingly endless demand for SPACs.
SPAC raised US$76 billion last year, This is a six-fold increase compared to 2019.
David Gareth, co-founder and managing partner of Wealthspring, a company that invested in SPACs, said: “A few years ago, SPACs were a relatively poor corner of the market. This is no longer the case.” “Billions. The unicorn of the dollar is embracing it now.”
Reporting by Charles Riley
Correction: An earlier version of this story incorrectly determined the company’s market value.