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.