Want to buy a piece of the pie?
It's been a topic of conversation for quite some time and the big day will supposedly happen this coming week. Lucid Motors has announced that the Special Purpose Acquisition Company (SPAC) merger between it and Churchill Capital Corp IV has been approved by stockholders.
Beginning sometime this week, Lucid Motors will begin trading on the NASDAQ under the ticker symbol "LCID." The EV automaker start-up announced last February its plans to go public sometime in the second half of this year. It's remained true to its word. The deal is expected to give Lucid a cash injection of about $4.4 billion. The money will be invested to expand its Arizona factory so that the Lucid Air luxury sedan can finally come to market. The Lucid Gravity SUV could debut sometime in 2022.
SPAC mergers are becoming increasingly common. Fisker and Faraday Future both utilized this reverse-merger method as a way to raise sufficient capital through an IPO by merging with private companies. Those companies are then able to acquire liquidity using the public market. Tesla didn't use the SPAC method when it went public back in 2010, but rather the traditional method. Lucid previously claimed it could be worth as much as $24 billion, but we'll have a more precise number in a few days.
Meanwhile, Lucid opened its Beverly Hills showroom last fall. The goal is to attract wealthy customers who desire something more luxurious than the typical Tesla Model S.
Customers can physically pick out interior materials, colors, and other custom touches before placing their orders. Like Tesla, Lucid is utilizing the direct-to-consumer business model, so forget franchised dealerships. This obviously won't sit well in many US states, as Tesla and Rivian have both learned. Lucid aims to set up an additional 20 studio showrooms throughout North America by the end of this year, though time is running out to meet this goal.
The Lucid Air sedan carries a starting price of $87,500 after a $7,500 federal tax credit. A top-of-the-line Lucid Air Grand Touring will set buyers back at least $131,500.