Young electric vehicle company Lucid Motors Inc. has agreed to go public by merging with special-purpose acquisition company Churchill Capital Corp IV in one of the largest deals ever involving a PSPC, the companies said on Monday.
The deal would inject $ 4.4 billion into the Bay Area automaker and value Lucid at $ 24 billion, a huge amount for a company that has yet to start production of its first car.
Lucid CEO Peter Rawlinson said the company will go public “to accelerate into the next phase of our growth.” The company plans to begin deliveries of its first car, a $ 169,000 super-luxury all-electric sedan called Air, in the second half of this year, the company said on Monday.
Equity investors in Churchill have even higher hopes. Its stock, trading around $ 40 after-hours on Monday, implied a valuation of Lucid of more than $ 65 billion. This compares to the roughly $ 75 billion market capitalization of General Motors Co., which reported a pre-tax profit of $ 9.7 billion last year while selling about 6.8 million vehicles in the world.
The deal shows the extraordinary appetite of stock investors for PSPCs, especially in all things electric vehicles. Amid the surge in the value of Tesla Inc.’s shares over the past year, investors have flocked to industry startups, pumping hundreds of millions of dollars into new companies like Fisker Inc. and Lordstown Motors. Corp. – startups that announced upcoming agreements publicly when they had dozens of employees and had not yet generated income.