Lucid’s rumored SPAC deal with Churchill Capital nears after Tuesday rally



Lucid’s possible SPAC merger with Churchill Capital IV is all but confirmed following the finance ’s inventory spiked during Tuesday trading hours. For months, speculation has persisted that Lucid, an all-electric automobile maker, can merge with CCIV in a deal that will take the company public ahead of the first manufacturing push of its own vehicles.

Widely known as Tesla’s largest competitor in the EV sector, Lucid is coming to the market later this year with its first car: the Air. Fixed in several different versions that cover a great number of performance and pricing choices, the Air includes range and speed similar to the Tesla Model S. CEO and CTO Peter Rawlinson, also a former Tesla engineer, maintains that the company “hasn’t accomplished a damn thing” until it generates a car, a narrative that is much appreciated by Tesla’s faithful fans that are all too knowledgeable about automakers claiming they are the enterprise to knockoff the widely-accepted king of electric vehicles.

* Lucid Motors nears deal to merge Churchill Capital IV Corp., evaluation ~ $12B$CCIV

— David Tayar (@davidtayar5) February 16, 2021


Lucid Air pricing showed ahead of unveiling event

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New details from Reuters reveal that Lucid’s merger deal with CCIV may be getting closer as Michael Klein, the firm ’s financier, has initiated discussions with shareholders to increase over a billion bucks by selling holdings of a private investment in public equity, or even PIPE, transaction. Investor demand will dictate how powerful CCIV’s capital increase is going to likely be, but the corporation could acquire around $1.5 billion, a person familiar with the issue said.

Sources then stated that a prosperous PIPE deal can land Lucid’s IPO at a date that may be as early as this season. Lucid and CCIV both declined to comment.

The rumors have jeopardized CCIV’s inventory up over 30% up to now on Tuesday. At the time of writing, shares were trading at $52.12.

SPACs behave as companies who raise money in an IPO to merge with a privately held company to become public later. It provides investors reassurance, mainly as SPACs offer private companies with more certainty over a company’s evaluation. This is especially relevant for a car company with enormous potential however doesn’t have some merchandise to show for it nonetheless. Lucid is a terrific example of a company that provides potential considering its aims and its already proven capability to generate a prominent vehicle.

Lucid intends to establish the Air Dream edition, alongside the Air Grand Touring variant of its introductory electric vehicle in Q2 2020. Other versions will be released in late 2021 and early 2022. Next year’s releases comprise its most affordable Lucid Air Pure, starting at $69,900.

The article Lucid’s rumored SPAC treat Churchill Capital nears after Tuesday rally appeared first on TESLARATI.

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