Luxury EV Maker Lucid Motors Goes Public

Image: Lucid Motors

by Natasha Lasky, ODP Staff Writer

As the domestic electric vehicle market in the United States continues to hit its stride and new competitors vie in the race to electrify, Lucid Motors has emerged as an ultra-luxury competitor to EV darling Tesla Motors. 

This week, Lucid went public through a SPAC with Churchill Capital Corp IV, or special purpose acquisition company, one of the hottest trends on Wall Street, according to CNBC. This path allows Lucid to skip the traditional path to becoming a publicly-traded company by merging with Churchill which is already listed on the New York Stock Exchange. 

As CNBC further explained:

The deal between Newark, California-based Lucid and Churchill is the largest in a series of such tie-ups involving EV companies and so-called blank-check firms. Previous SPAC deals with EV start-ups such as Nikola, Fisker and Lordstown Motors garnered Pro-forma valuations of less than $4 billion.

Why This Matters: This large investment into Lucid suggests just how big of a market electric vehicles are set to become. Wood Mackenzie, an energy research and consulting firm, suggests that electric vehicles will make up 18 percent of new car sales by 2030

For EV and cleantech companies especially, the SPAC model is becoming an increasingly popular means of raising cash. Learn more about how they work

 

Competing with Tesla: Lucid’s CEO, Peter Rawlinson, is a Tesla alum, where he was the chief engineer of the Model S sedan from 2009 to 2012. Tesla is currently the most valuable automaker globally by market capitalization; it 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.

Lucid’s market cap is just a small fraction of Tesla’s roughly $686 billion valuation, but that’s impressive for a luxury electric-vehicle maker who doesn’t yet have a car on the market. Rawlinson repeatedly stated that Lucid is not a direct competitor to Tesla because his company’s price point is beyond the mass-market buyers Elon Musk aspires to reach.

As Verge explained, Lucid was initially focused on battery technology, but ultimately pivoted into becoming an electric vehicle startup a few years ago. Lucid That said, Lucid’s luxury vehicles will have over 500 miles of range, the highest in the industry, and the company is beginning deliveries of its sedan this year. Lucid also plans to bring an SUV to the market in 2023 and scale up its factory in Arizona to produce 365,000 units per year with its 2,000 employees.

 

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