Ebene News – FI – Buy Churchill Capital IV (CCIV) on Lucid Motors $ 12 Billion Merger Report

Guests take a test drive in Lucid Motors Inc’s new “air” electric car on Wednesday, Dec 14, [] 2016, in Fremont, Calif. (Aric Crabb / Bay Area News Group) (Photo by MediaNews Group / Bay Area News via Getty Images)

An old Tesla
TSLA
executive co-founded Lucid Motors in 2007 14 years later, Reuters reported that Lucid could go public through CCIV, a Special Purpose Acquisition Company (SPAC) sponsored by Michael Klein

This report sent CCIV – in which I have no financial interest – up almost 35% – giving it a market cap of around $ 15 1 billion

If the deal goes through, I expect CCIV to continue rising After all, as Forbes reported, Lucid intends to launch a $ 169,000 luxury electric vehicle this spring and expand its target market by extending its technology to low-cost vehicles

Lucid was founded in 2007 under the name Atieva by former Tesla
TSLA
executive Bernard Tse and entrepreneur Sam Weng

According to Bloomberg, “Atieva spent years focusing more on battery technology than developing a luxury car. He pivoted in 2016, changed his name to Lucid and started working on it. which would become its main model, the Air “

Current Lucid CEO Peter Rawlinson was Tesla’s chief engineer in 2011 and led the design of its Model S, Forbes noted

Reuters reported that a merger between Lucid Motors and CCIV “is drawing closer” – citing “people familiar with the matter”

CCIV is said to be raising $ 1.5 billion from investors in a private public equity investment (PIPE) transaction that would be added to the $ 2 billion raised by CCIV during an IPO in July 2020

Lucid Receives Extensive Funding According to Reuters, Chinese and Silicon Valley investors provided capital to Lucid and, in 2018, to Casa Grande in Lucid, Arizona US The assembly plant was “boosted by an investment of $ 1 billion [from] Saudi Arabia’s public investment fund, ”according to Reuters

This is not the first breathtaking report that Lucid Motors would merge with a Klein-sponsored SPAC On January 11, Bloomberg announced that Lucid would merge with “a Michael Klein SPAC [valuing Lucid] to the tune of $ 15 billion”

This still has not happened As for the February 16 report that this merger was imminent, the parties do not confirm it According to Barron’s, “Churchill and Lucid were not immediately available to comment on today’s report ‘hui “

One of the reasons to consider buying Lucid Motors is that it would have a product roadmap

According to the Silicon Valley Business Journal, “Lucid plans to deliver the Lucid Air, its first car, later this year from a new plant in Arizona The first version of the Air – the Dream Edition – will cost 169,000 $ and offer a range of 503 miles between charges “

Lucid also plans to sell cheaper versions of the Air These include “the base Pure model at $ 69,900, a Touring model at $ 87,500 and the Grand Touring edition at $ 131,500, more later this year and into 2022, ”noted the Silicon Valley Business Journal

Rawlinson sees history repeating itself with the Lucid Air As he told Forbes, in 2012 no one thought the Tesla Model S would be considered the best electric car in the world He said he received similar disbelief and hostility in response to claims the Lucid Air would be a big step forward

Rawlinson said that “the Air will overtake the S with a charge of 517 miles per charge, faster recharging and the ability to go from 0 mph to 60 mph in just over 2 seconds,” according to Forbes

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He plans to use Air’s 1,080 horsepower propulsion technology to “power cheaper electric vehicles [allowing Lucid to sell] hundreds of thousands of electric cars with an average value of 40,000 dollars and help major automakers sell mass electric vehicles for $ 25,000 “by 2026, Forbes noted

Lucid Could Generate Huge $ 900 Million In Revenue In 2021 By Making 6,000 Streams Rawlinson told Forbes the volume could “exceed 25,000 units in 2022 with the arrival of versions of Air priced at $ 77,000.”

One of the main reasons not to buy CCIV is that rumors of a merger with Lucid have not been confirmed.The deal may not go through – and that would leave investors in a difficult position

Then there’s the little question of whether Rawlinson can actually run a state-owned company with revenues reaching $ 900 million in one year.

I quit American companies in 1994 and started a management consulting and venture capital firm (http: // petercohancom) I started following stocks in 1981 when I was at

I quit American companies in 1994 and started a management consulting and venture capital firm (http: // petercohancom) I started following stocks in 1981 when I was in school graduate of MIT and first analyzed tech stocks as a guest on CNBC in 1998 I became a Forbes contributor in April 2011 My 14th book – published in February 2019 – is “Scaling Your Startup: Mastering the Four Stages from Idea to $ 10 Billion” “I appeared eight times in the 2016 documentary:” We The People : The Market Basket Effect “(http: // www.com market basket effect /) I also teach business strategy and entrepreneurship at Babson College in Wellesley, Mass (http: // wwwBabsonedu / Academics / faculty / profiles / Pages / Cohan-Peteraspx)

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Ebene News – FI – Buy Churchill Capital IV (CCIV) on $ 12 billion Lucid Motors Merger Report

Source: https://www.forbes.com/sites/petercohan/2021/02/17/buy-churchill-capital-iv-cciv-on-12b-lucid-motors-merge-report/