Lucid Motors goes public

They opted for a SPAC transaction rather than an IPO

California-based start-up Lucid Motors has gone public, following the announcement that the Special Purpose Acquisition Company (SPAC) merger between Lucid and Churchill Capital Corp IV has been approved by stockholders. Lucid Motors (“LCID”) will begin trading on the Nasdaq.

Lucid CEO Peter Rawlinson announced that the company intended to go public earlier this year and now that they have, their SPAC will bring an additional $4.4b in funding, which will be used to accelerate production of the Air and the Gravity SUV, which are now expected for late 2021 and 2022 respectively.

"Lucid will add 2.7 million square feet of additional space at our greenfield factory in Arizona. This will allow us to add a separate line for our Project Gravity electric SUV even as we accelerate its development," added Rawlinson. "We believe we’re creating the best EVs ever made. But our aspirations go beyond selling cars. Our planet is facing an environmental crisis that impacts every living being – now and in the future."

Tech/auto companies like Lucid, Fisker and Faraday Future have often been resorting to SPAC mergers in recent years. In short: with an IPO, a private company issues new shares to go public, whereas with a SPAC transaction, the private company becomes publicly traded by merging with a listed company.

Lucid is aiming to entice potential/existing Tesla customers that are looking for something more unique and luxurious, which is why they opened a new showroom in Beverly Hills and another studio in Manhattan over the last few months.

Unlike Tesla, which only offers pre-ready trim packages with only a few options available, Lucid wants customers to pick trims, colors and custom details for their car, hence the studio/showroom idea. However, just like Tesla, Lucid will follow the direct-to-consumer business model, with no franchised dealerships, but they will open more company-owned showrooms as some US states require car makers to have some form of physical presence.

The Lucid Air is available from $87,500 after a $7,500 federal tax credit, while the range-topping Lucid Air Grand Touring will be priced from $131,500.

What is your opinion on Lucid?

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Comments (11)

  • I struggle to get myself excited about this. Probably because I'm not a huge fan of EVs or most new cars.

      1 month ago
    • If you remember the birth of smart phones, Apple was first out just like Tesla. These are tech products at the end of the day. It will be so intertwined with your daily life making it tough to change brands. Lucid was late, and they will burn cash...

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        1 month ago
    • I think you have this right. These are tech products first and cars second. It’s the end of an era that we all loved (ICE cars are what made us fall in love with motoring) and the start of a new era. In general the whole EV thing is where you should...

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        1 month ago
  • I really love what I’ve been reading about Lucid, from their business model, the way they treat their employees, the amazing paint process and the Air is the most gorgeous EV yet IMHO. Expensive yes but if we here in the CONUS don’t get the Hydrogen Fuel Cell infrastructure (which would be my preference) prior to having to garage my gas/ethanol powered vehicles. My money will go to a long range Lucid model of that time.

      1 month ago
  • Have they even made any cars yet? Or the cars only "Market Ready" in that the company is "ready" to take your money?

      1 month ago
  • Good news! I’ve been wanting to invest in Lucid for a few months now, and here is my opportunity.

      1 month ago