The state-of-the-art factory can easily handle its current capacity but will be able to churn out 365,000 cars annually when fully operational. Lucid Motors' growth potentialĪt the end of 2020, Lucid Motors completed the initial stages of its Advanced Manufacturing Plant (AMP-1) in Casa Grande, Arizona. As for the product, it expects to ship roughly 600 vehicles by year's end and over 135,000 annually by 2025. According to the company's S-1, by 2025, it expects to have revenue of nearly $14 billion, net income of over $630 million, EBITDA of $1.7 billion, and free cash flow totaling over $320 million. It should be noted that the deal stipulates that Churchill Capital receives only 16.1% of Lucid Motors. With a $60 billion market cap and 1.6 billion shares outstanding, price per share is anticipated to fall in the $35-$40 range. Valued at $24 billion, the deal also provides Lucid Motors with $4.6 billion in cash to put towards production. As this is a SPAC IPO, you can purchase shares of CCIV now, which will convert to LCID on the Nasdaq after the merger is completed. Lucid Motors will be going public through a SPAC merger with Michael Klein's Churchill Capital Corp IV (NYSE: CCIV) on July 23. In 2019, CTO Peter Rawlinson, former VP of Engineering at Tesla, was given the additional title of CEO to lead the company in its endeavors. In 2016, the company rebranded as Lucid Motors and announced its intentions of launching an all-electric high-performance luxury vehicle. The company was founded in 2007 by Bernard Tse and Sam Weng as Atieva, to build EV batteries and powertrains for other manufacturers. Lucid Motors, which is making its market this month via a SPAC merger, plans to occupy the high-end luxury niche of the EV market. CNN Sans ™ & © 2016 Cable News Network.As Tesla ( NASDAQ: TSLA) tries to maintain its market share in the electric vehicle (EV) space, competition continues to emerge from not only new companies but traditional automakers as well.Ĭontenders are trying to lower battery costs, embrace different business models like NIO's Battery as a Service (BaaS) paradigm, and electrify popular vehicles that currently use internal combustion engines, as is the case with Ford's F-150 Lightning model. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account After the deal was announced, CCIV’s share price tumbled more than 40%. Lucid’s merger has been widely anticipated, driving up the price of CCIV shares more than 470% since the start of 2021. Many companies have chosen to go public over the past year through SPACs instead of traditional IPOs, which typically invite more scrutiny from both investors and regulators. Tesla, the most valuable automaker in the world by market capitalization, sells the Model S, an electric luxury sedan that starts at $73,990, with long-range variants also having a range of just over 500 miles.ĬCIV is a special purpose acquisition company, or SPAC, which is a shell corporation that has the sole purpose of buying or merging with a private company in order to take it public without a traditional initial public offering. Peter Rawlinson, the CEO of Lucid, helped develop the Model S sedan while working at Tesla from 2009 to 2012. Lucid is trying to compete directly with Tesla. The transaction will be used to expand Lucid’s Arizona factory, the company said, which it eventually expects to be capable of producing 365,000 vehicles a year. The deal left the company with a market capitalization of $9.17 billion, as of this writing, and will give more than $4 billion in cash to Lucid Motors. (Photo by Michael Loccisano/Getty Images) Michael Loccisano/Getty ImagesĬelebs including A-Rod and Ciara are getting into SPACs. NEW YORK, NY - MAY 08: Sports commentator and former professional baseball player Alex Rodriguez takes part in a panel during WSJ's The Future of Everything Festival at Spring Studios on in New York City.
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