The deal values Lucid at $24 billion and confirms an earlier report from Bloomberg, which had put the value at around $15 billion. The EV startup will also get $4.4 billion of cash from Churchill as well as other investors like Saudi Arabia’s sovereign wealth fund, BlackRock, Fidelity Management and others.
The transaction is expected to close in the second quarter, allowing Lucid stock to begin trading on the New York Stock Exchange.
The Lucid stock deal is the largest special purpose acquisition company merger, easily topping United Wholesale Mortgage’s $16 billion merger with Gores Holdings IV.
Led by Peter Rawlinson, a former chief engineer of Tesla, Lucid is supposed to deliver the luxury Lucid Air sedan, its first EV, later this year. The initial Dream Edition will cost $169,000 and drive 503 miles between charges.
But the base model of the EV is notable for drawing the attention of Tesla CEO Elon Musk last year, when Lucid set a $77,400 entry price for its Air sedan.
In October, Musk tweeted “gauntlet has been thrown down” as he announced a price cut for the Model S to $69,420 from the listed price at the time of $71,990.
Lucid Stock Looks To Debut
Shares of Churchill Capital tumbled 30% late after closing up 8.4% at 57.37 in Monday’s stock market trading, more than halving earlier gains. Churchill stock added to last week’s 32% gain on the Lucid stock deal reports.
NextGen Acquisition (NGAC), which will merge with electric truck maker Xos, climbed 5.4% to 13.89.
The Xos transaction is set to close in the second quarter with the combined company listing on the Nasdaq under the symbol XOS.
The deal will provide Xos with $575 million in proceeds and values the company at $2 billion. It expects to be cash flow positive by 2023.
Unlike many EV startups debuting on the stock market, Xos has EVs on the road. It also offers a package that bundles commercial electric trucks and vehicle services to fleet operators for a monthly fee. Customers include UPS (UPS).
The Xos and Lucid stock deals come during a busy week for EV stocks.
Meanwhile, China-based EV stock Li Auto (LI) reports early Thursday.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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