f
  •  
EV maker Lucid Motors to go public via Michael Klein-backed blank-check firm © Reuters. Lucid Air speed test car displayed at the 2017 New York International Auto Show in New York

(Reuters) - Lucid Motors on Monday agreed to go public by merging with Churchill Capital IV Corp, a blank-check firm backed by Wall Street dealmaker and former Citigroup banker Michael Klein, in a deal that valued the combined company at $11.75 billion.

The deal with Churchill Capital IV Corp includes a private investment of $2.5 billion from Saudi Arabia's Public Investment Fund, funds managed by BlackRock (NYSE:BLK) and others. It is expected to provide Lucid with $4.6 billion in proceeds.

The California-based EV maker had said in August that it aims to start selling its first luxury model, Lucid Air, early this year. The electric sedan would be the first to achieve a 500-mile driving range, the company said. (https://reut.rs/3nBdh0I)

Lucid Air has a starting price of $77,400. But it would come down to $69,900 as customers may be eligible for a federal tax credit of $7,500.

After the luxury electric sedan was priced, Tesla (NASDAQ:TSLA) Chief Executive Elon Musk had in October last year announced a cut in the price of Model S Sedan. He tweeted, "The gauntlet has been thrown down!"

It was last year that other EV makers such as Nikola Corp and Fisker Inc went public through mergers with blank-check firms. Los Angeles-based EV firm Faraday Future Inc also announced a deal with a blank-check company to go public earlier this year.

Founded in 2007 by former Tesla Inc executive Bernard Tse and entrepreneur Sam Weng as Atieva Inc, Lucid had received initial funding from Chinese technology company LeEco, which is controlled by Faraday Future founder Jia Yueting.

Churchill capital Corp IV, the fourth special purpose acquisition company (SPAC) backed by former Citigroup Inc (NYSE:C) banker Michael Klein, went public in a $1.8 billion initial public offering (IPO) in July last year.

SPACs are shell companies which raise money through an IPO to take another company public within two years.

Such mergers have become a popular alternatives for companies looking to go public, with over 200 SPAC deals collectively raising more than $70 billion in equity last year.


Other relevant articles 
[2021-02-22 16:40:23] U.S. Supreme Court to review a hardline Trump immigration rule
[2021-02-22 16:00:26] Yellen: stimulus success judged by returning to pre-pandemic...
[2021-02-22 16:00:26] U.S. lawmakers ask video providers to address misinformation by...
[2021-02-22 15:35:21] Sensor maker Velodyne Lidar removes board chair following...
[2021-02-22 14:35:23] Traders See Earlier Fed Hikes, Even as Goldman Cautions on Pace
[2021-02-22 13:15:22] Roblox revives plans to go public
[2021-02-22 11:10:21] Biden to revise small business loans to reach smaller, minority...
[2021-02-22 10:00:26] Saudi defence firm SAMI targets $5 billion annual revenue by 2030
[2021-02-22 07:15:21] OPEC, U.S. oil firms expect subdued shale rebound even as crude...
[2021-02-22 06:30:22] Baidu-Geely EV venture names Mobike co-founder as chief
[2021-02-22 01:15:22] Global dividend payouts forecast to revive in 2021
[2021-02-21 18:30:19] Blackwater founder Erik Prince accused of helping evade U.N. Libya sanctions
[2021-02-21 15:55:24] Medvedev hopes for more chances to end Grand Slam drought
[2021-02-21 12:20:25] Precious Metals & Energy - Weekly Review and Calendar Ahead
[2021-02-21 09:30:18] Sudan central bank unifies exchange rate, likely devaluing currency
[2021-02-20 10:40:14] Djokovic marginally ahead of Medvedev for final, feels Corretja
[2021-02-20 09:00:18] Indonesian capital slammed by monsoon floods, more than 1,000 forced to evacuate
[2021-02-19 23:05:12] Google to evaluate executive performance on diversity, inclusion
[2021-02-19 17:15:11] Draghi fever may drive Italian risk premium to post-crisis low
[2021-02-19 16:40:11] Deere Surges With Cashed-Up Farmers Signaling Best Year Ever
[2021-02-19 10:35:10] Huuuge Steady in Debut After Warsaw’s Biggest-Ever Gaming IPO
[2021-02-19 08:15:15] Analysis: Carmakers wake up to new pecking order as chip crunch...
[2021-02-19 07:50:10] Carmaker Renault posts record $9.7 billion loss for 2020
[2021-02-19 06:20:15] Geely departs from convention with plan for new EV unit: sources
[2021-02-19 03:30:10] Dollar Inches Up, Even as Investors Digest Disappointing U.S. Labor Data
[2021-02-19 02:50:10] Harris taps growing political power of women lawmakers to promote...
[2021-02-19 02:35:10] China reveals four soldiers killed in June 2020 border clash with...
[2021-02-19 02:35:10] Gold Goes From Commodity Leader to Laggard in Shocking Reversal
[2021-02-18 22:55:08] Roku beats quarterly revenue estimates on streaming boost
[2021-02-18 20:05:07] Ford latest automaker to shut North American plants on U.S....
[2021-02-18 18:15:07] Biden to order review of U.S. reliance on overseas supply chains...
[2021-02-18 17:15:07] American, JetBlue launch first phase of partnership even as...
[2021-02-18 17:10:07] White House revokes Trump order limiting climate change in...
[2021-02-18 14:15:07] Bosch, Microsoft join forces to develop vehicle software platform
[2021-02-18 11:55:06] Baidu-Geely EV company picks Mobike co-founder as CEO: sources
[2021-02-18 11:15:06] Automakers, medical device firms ask Biden for U.S. chip factory...
[2021-02-18 03:35:07] Baidu says has decided on a CEO and brand for its EV company with...
[2021-02-18 01:15:11] With chip supplies constrained, Analog Devices delays California...
[2021-02-17 20:10:11] Biden will ask DOJ to review his authority to cancel student loan debt - White House
[2021-02-17 19:40:09] White house cyber adviser says it will take several months to investigate hack
[2021-02-17 18:10:07] U.S. lawmakers ask Blinken for briefing on Nord Stream 2 natgas pipeline
[2021-02-17 14:30:08] Chevron, Verizon Rise Premarket; Apple Falls
[2021-02-17 14:15:10] Brexit a "remarkable opportunity" to make City of London more...
[2021-02-17 13:15:07] Shopify beats holiday quarter revenue expectations
[2021-02-17 11:45:07] Japan agrees $668 million loan to African Development Bank fund
[2021-02-17 07:15:07] Traders chase sky-high returns in leveraged exchange traded...
[2021-02-17 06:00:22] Texas deep freeze leaves millions without power, 21 dead
[2021-02-17 05:55:20] Dollar Up, Reverses Tuesday’s Decline But Inflation Debate...
[2021-02-16 23:10:05] Boeing backs Trump EPA airplane emissions standards amid Biden review
[2021-02-16 21:50:26] 15 states sue U.S. agency over delayed hike in automaker...
[2021-02-16 20:40:04] Exclusive: Lucid Motors nears SPAC deal as Klein launches...
[2021-02-16 19:35:03] Printed in days, a house: New York firm takes 3D printing to the...
[2021-02-16 17:50:03] Several companies freeze operations as severe weather disrupts...
[2021-02-16 16:25:03] Citigroup loses bid to recoup Revlon payouts after gaffe -- court ruling
[2021-02-16 16:20:04] Crude Oil Still at Elevated Levels on Cold Snap
[2021-02-16 13:45:03] Bitcoin breaks above $50,000 for first time ever
[2021-02-16 13:15:03] Palantir reports 40% rise in fourth-quarter revenue
[2021-02-16 10:15:03] Fund managers cut cash levels to 2013 levels, pre taper-tantrum:...
[2021-02-16 09:50:03] Amazon says to make TV streaming device in India
[2021-02-16 08:40:26] UK competition regulator concerned over $9.2 billion...
[2021-02-16 01:10:26] UK competition regulator should get beefed-up role: lawmaker report
[2021-02-15 21:35:23] U.S. lawmakers will set up commission to probe Jan. 6 attack on Capitol: Pelosi
[2021-02-15 16:45:22] AB InBev takes Constellation to U.S. court over Corona brand name
[2021-02-15 13:50:22] Exclusive: Equinor considers more US asset sales in global...
[2021-02-15 09:25:22] One-off wealth tax might help fix COVID hit to UK budget:...
[2021-02-15 00:20:22] Biden to hold virtual event with G7 leaders on Friday: White House
[2021-02-14 13:40:18] Precious Metals & Energy - Weekly Review and Calendar Ahead
[2021-02-14 11:55:18] Zverev reaches last eight with easy win over Lajovic
[2021-02-14 08:45:18] NBA roundup: Kevin Durant returns to Bay Area as Nets rout...
[2021-02-14 08:40:17] Tennis: Russian qualifier Karatsev reaches last eight on Slam...
[2021-02-14 01:55:18] Highlights: Australian Open day seven
[2021-02-13 23:25:16] Factbox: Seven Republicans vote to convict Trump in impeachment trial
[2021-02-13 19:35:15] Canada captain Sinclair unavailable for SheBelieves Cup
[2021-02-13 12:50:14] EU calls on China to reverse ban on BBC World News channel: AP News
[2021-02-13 12:10:14] Clubhouse says reviewing data protection practices after report...
[2021-02-13 07:20:20] Medvedev survives Krajinovic test to reach last 16
[2021-02-12 23:55:12] Amex reveals U.S. probes into business, consumer cards sales...
[2021-02-12 17:30:12] SoftBank-backed Coupang reveals revenue surge ahead of U.S. IPO
[2021-02-12 04:55:10] Analysis: Global fuel prices jump as Asia, U.S. to rev up demand in Q2
[2021-02-11 22:45:09] Walt Disney Posts Surprise Profit as Revenue Beats in Q4
[2021-02-11 22:15:08] Disney posts smaller-than-expected drop in quarterly revenue
[2021-02-11 17:55:07] White House says no specific decisions on domestic air travel...
[2021-02-11 16:40:07] Biden to call for U.S. infrastructure revamp in meeting with...
[2021-02-11 14:40:07] U.S. Jobless Claims Make No Headway as Revisions Wipe Out Last...
[2021-02-11 13:40:07] EU lawmakers extend airline slot relief through summer
[2021-02-11 13:25:28] Amazon, Ferragamo sue several firms, people over counterfeit...
[2021-02-11 12:20:07] PepsiCo expects revenue to grow in 2021, beats fourth-quarter...
[2021-02-11 10:25:13] RCEP unlikely to benefit developing members in short term:...
[2021-02-11 10:15:09] EU told 1 million public EV charging stations needed by 2024
[2021-02-10 22:40:04] Uber Q4 Results Miss Expectations; Remains on Track to Meet...
[2021-02-10 21:20:05] CBS scores record $545 million in Super Bowl ad revenue despite...
[2021-02-10 19:50:04] Biden expected to announce Pentagon review of China strategy:...
[2021-02-10 19:15:07] Toyota to unveil two new EVs for U.S. market that will go on sale in 2022
[2021-02-10 18:10:04] Shift in euro shares from London to EU is bad for everyone, says UK
[2021-02-10 16:40:03] U.S. December wholesale inventories revised higher
[2021-02-10 15:15:03] Electric aircraft maker Archer to go public in $3.8 billion...
[2021-02-10 14:05:03] GM reports stronger-than-expected quarterly profit
[2021-02-10 13:35:03] TikTok sale to Walmart, Oracle takes back seat as Biden reviews...
[2021-02-10 13:10:03] Coca-Cola quarterly revenue falls 5% on new pandemic restrictions
[2021-02-10 04:30:04] Apple partners with TSMC to develop ultra-advanced displays:...