A merger with a financier has boosted Lucid’s value.
The Lucid Air arrives in the second half of 2021.
We’ve reported many times on Lucid Motors in 2020 mostly on their soon-to-arrive Air premium electric sedan. This round belongs to the news that they are merging with Churchill Capital Corp IV. Their combined public valuation is set at $24 billion.
The highlight for Lucid is that this merger will generate roughly $4.5 billion in cash. These funds will be used to bring vehicles to market and expand its factory in Casa Grande, Arizona according to Forbes.
The Lucid Air was initially expected this spring however that launch date has been pushed back to the second half of 2021. Even so, the new funds will quickly ramp up operations. Lucid CEO Peter Rawlinson said: “I really believe we’ve got the tech to pose competition (to Tesla) which is healthy. This gives us a very secure runway into 2023, to get the factory ready for the advent of Gravity and is giving us an absolute path to accelerate our trajectory.”
In time, Lucid expects to be able to build 365,000 vehicles per year. Part of this plan will include the introduction of a new mid-$40,000 model which should arrive in the next three to five years.
The stakes are high and competition with Tesla should be fierce. Even though Lucid states that Tesla is not a direct competitor, the upcoming Air luxury sedan sports specs that surpass even the top-line Model S’ numbers. Clearly, Tesla was a target or, at the very least, a benchmark.