The CEO of Lucid Motors claims the electric vehicle start-up is in a “enviable position” as its stock soars in its first public offering.
After finalizing the SPAC acquisition, Lucid Motors began trading on Wall Street on Monday. The stock rose over 10% to more than $26 under the ticker code LCID.
When the merger with Churchill Capital Corp IV a splendid purpose acquisition, firm founded by senior investment banker Michael Klein was announced in February.
The blank-check company’s stock dropped nearly half. Churchill Capital Corp IV , had soared 400 percent to an all-time high of $64.86, on speculation in the weeks leading up to the Lucid purchase.
The acquisition rewarded current firm owners $11.75 billion in stock. It also provided more than $4 billion in cash for Lucid’s development ambitions, which include the current facility in Arizona.
Lucid CEO Peter Rawlinson said Monday on “Squawk Box” , that the fundraising puts the company .” in a very enviable position” compared to Tesla which raised $226 million in its initial public offering in 2010. The transaction, according to the ex-Tesla engineering chief, ensures Lucid’s financial runway through the end of 2022.
Klein said in a conference call Thursday that the reverse merger was approved by more than 99 % of firm shareholder in an extended vote
The purchase which valued Lucid at $24 billion on a pro forma basis. was the largest of its kind involving electric vehicles and blank-check corporations. Nikola, Fisker, and Lordstown Motors were all valued at less than $4 billion in previous SPAC transactions.
Until September 2018, Lucid had some trouble acquiring money. Saudi Arabia's sovereign wealth fund stepped in with money at that point. According to The Wall Street Journal, the kingdom's Public Investment Fund. which owns more than 60% of Lucid, stands to profit over $20 billion on a $2.9 billion investment.
After delays caused by the Covid epidemic, Lucid hopes to deploy its new electric vehicle, the Lucid Air, in the second half of this year. Rawlinson previously told CNBC that the Air will pave the way for a future portfolio of all-electric vehicles, including an SUV that will go into production in early 2023, as well as more economical vehicles down the road.
On Monday, the business said that it has received 11,000 paid reservations for Lucid Air vehicles.
As Tesla opens up its charging network to other manufacturers, Rawlinson believes that different EVs working on each other's networks would be a "excellent answer."
While the Dream model is priced at $169,000, Rawlinson stated that the business plans to make its other Air versions more affordable in the near future. After the federal tax credit, the Air costs $69,000.
Rawlinson, who joined Lucid as chief technology officer in 2013 and then CEO three years later, believes that product defines brands, not the other way around. “We need to make this shift to sustainable mobility, and our superior technology can help us do that.”