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Discussion Starter · #1 ·
A Lucid Motors IPO is expected to happen soon according to the automaker, industry sources and general knowledge of how new companies typically proceed with IPO's. Ahead of when that happens I thought we could discuss how best to prepare.

To start, here's some basic information to get started:

About Lucid Motors Stock
Lucid Motors sets out to create a car that elevates the human experience and transcends the perceived limitations of space, performance, and intelligence. A car that is intuitive, liberating, and designed for all the ways people get around. Lucid Motors plans to lead in this new era of mobility by returning to the fundamentals of great design – where every decision we make is in service of the individual. Because when you are no longer bound by convention, you are free to define your own path.

Investors
  • China Environmental Fund
  • Jafco Life Science
  • Mitsui & Co
  • Saudi Arabia's Public Investment Fund
  • Venrock

Funding History
December 2009$7.0M
January 2011$24.0M
May 2014$100M
September 2018$1.0B


Management
Chief Executive & Technology Officer
Peter Rawlinson


Will lucid Motors go public?
If Lucid Motors is able to deliver on its planned release data of 2021 for the Lucid Air, investors may take notice if it eventually goes public.

Can you buy shares before IPO?
IPO stock can be bought before or after the underwriting broker sets the opening price. To buy the stock before the price is set, you must be a professional investor or have a special relationship with management. However, these investments are generally in very large amounts in the millions of dollars.

Will lucid Motors survive?
Two electric vehicle startups — Rivian and Lucid Motors — are best positioned to survive the fallout from the pandemic, industry experts tell Axios. ... Production was supposed to start at the end of this year but was pushed into 2021 because the pandemic temporarily slowed construction at Rivian's Illinois factory.
 

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Discussion Starter · #2 ·
What will the Lucid Motors stock price be?

Anyone want to guess?

Tesla IPO'd at $17, but I'm not so sure it has much predictive value for Lucid. A lot changes in 7 years. We're in a different climate and its not clear what Lucid's stock price will be.
 

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Can you buy into the Saudi Arabia's Public Investment Fund right now? That might be one way to get in early.
 

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Looks like Lucid is getting ready to go public! Keep your eyes open guys. Seems like it could be through a SPAC rather than IPO.


Lucid Motors was near death and desperate for cash in 2018 when it was handed a lifeline. The savior was Saudi Arabia.

The desert kingdom’s sovereign wealth fund invested $1.3 billion in the electric car start-up. Lucid regained full health.

Now, in 2021, the Saudi fund and Lucid’s founders are poised to cash in by taking advantage of the manic market in so-called blank-check shell companies, also known as SPACs.

In a deal that is near completion, according to a source familiar with the negotiations, the company would draw a hefty but as-yet undetermined amount of cash to fund its operations. If the deal goes off without a hitch, Lucid executives and board members — including Chairman Andrew Liveris, a former Dow Chemical chief executive with deep financial ties to Saudi Arabia — would get a shot at a big payday.

In a bull market that the word “frothy” hardly does justice to, increasing numbers of private companies are looking to cash out through special purpose acquisition companies — SPACs.

SPACs offer a quicker, easier, more secretive way to take a private company public versus the conventional initial public offering, or IPO. Through a sale to a blank-check entity, a company that wants its shares traded on public markets can get there much faster — typically several months versus up to a year for an IPO — with much less disclosure of its inner workings and the associated red tape.

Once considered a sketchy alternative, in the high-momentum markets of 2020 into 2021, SPACs have become very popular. Last year, $73 billion was raised in SPAC deals, up from $13 billion in 2019, according to Goldman Sachs. For the first time last year, the volume of SPAC deals outpaced that of traditional IPOs, which came in at only $67 billion.

Electric-vehicle and related companies are driving a lot of that activity. Fuel-cell truck company Nikola, electric-car maker Fisker, electric-bus company Proterra, electric-truck maker Lordstown, electric-robotaxi company Canoo and many more have completed or announced SPAC deals.




“EV entrepreneurs have figured out they can ride the Tesla wave,” said David Kirsch, business professor at the University of Maryland and coauthor of the recently published book “Bubbles and Crashes.”

It’s a phenomenon he thinks has all the hallmarks of a bubble, with Tesla’s mind-blowing $800-billion valuation stoking imaginations. Electric-vehicle manufacturing is a capital-intensive undertaking, so companies are likely to strike when the market offers what they expect to be top dollar.

The SPAC phenomenon specifically has Kirsch and many others worried because the markets are being driven higher now in large part by unsophisticated retail investors.

“When you combine [SPACs] with Robinhood investing, the gamification of finance, fractional share ownership and novice investors, there’s a lot of opportunity for opportunistic behavior,” Kirsch said.

He was speaking generally, but elements of the Lucid deal merit a closer look. There’s no indication that the company is anything but the real deal, with its luxury Lucid Air automobile ready to roll out of the company’s new Arizona factory in coming months. The car’s stylish interior and exterior and its electric-drive innovations have drawn widespread approval.

“Lucid Motors has always been clear about its intent to go public at some point in order to accelerate the adoption and global availability of Lucid’s exclusive electric vehicle and sustainability technologies,” the company said in an emailed statement. “Currently, our focus continues to be on bringing Lucid Air to production in spring of this year, with the strong support of key investors and our partners at the Public Investment Fund.”

Yet the deal itself, and the details of its owners’ financial relationships and strategic goals, could well affect the company’s performance.

Quick explainer: A SPAC goes public with no assets but with a plan to acquire, at some point, at least one private company.

In a bull market, this arrangement can yield a bonanza for insiders. Whether on the SPAC side or the private company side, they can buy shares in the SPAC at the typical price of $10 a share.

Those shares often come with warrants, which are future options on the stock. If the public markets take the stock higher, they profit. If it goes higher than the option stock price, often set at $11.50, they profit more. Several of the earlier EV SPACs have nearly doubled in price.

Retail investors may know that Lucid is a hot electric car company, but probably don’t know much at all about how the pending SPAC deal is structured.

Liveris, for example, not only serves as Lucid’s chairman but also is an operating partner at Churchill Capital IV, the SPAC that’s planning to buy Lucid (Ticker: CCIV). That makes Liveris a player on both sides of the deal. Kirsch said it’s highly unusual to have officers from the acquired company hold an operating role in the SPAC.

The Times asked to speak with Liveris, but Lucid declined and Churchill did not respond.

Liveris’ tenure at Lucid has been kept under wraps. He’s included on the carmaker’s board of directors page, but the company never issued a news release or made any other announcement when he became chairman.

Asked when Liveris joined Lucid, a spokesman for the carmaker said via email: “Unfortunately, I’m not able to share that information at this time.”

The Wayback Machine at the Internet Archive shows Liveris first mentioned on the Lucid website in November 2019. Whether he joined Lucid when the sovereign wealth fund announced its $1.3-billion investment in Lucid on Sept. 17, the company won’t say. Two weeks before that, Liveris was named special advisor to the Saudi sovereign wealth fund, formally known as the Public Investment Fund.

Lucid drew the Saudi fund money in the nick of time. In October 2018, agents of the Saudi government murdered Washington Post columnist and royal family critic Jamal Khashoggi, putting many international deals with Saudi Arabia at least temporarily on ice.

Liveris’ Saudi connections run deep, as do Michael Klein’s. Klein is the CEO of the Churchill SPAC. He’s a longtime advisor to Liveris. When Liveris ran Dow, Klein led the creation of a joint venture between Dow and Saudi Aramco, the giant oil company, to build a mammoth $20-billion chemical plant in Saudi Arabia’s Jubail Industrial City.

The venture, named Sadara, is owned 65% by Aramco and 35% by Dow. It has proved to be a financial debacle.

Dow took a $1.75-billion write-off on Sadara in 2019. Its third-quarter 2020 report included a $103-million “negative investment balance” in Sadara.

Aramco reported asset value for its share of Sadara in 2018 of $11.6 billion. In 2019, that was reduced to $4.4 billion.

The Saudi Public Investment Fund helped finance the Sadara deal. That’s the same fund that put $1.3 billion into Lucid. The head of international investments for that fund, Turqi Alnowaiser, is a Lucid board member. Lucid said Alnowaiser was not available for comment.

Cash flow is so stressed at Sadara that Dow lent $280 million to Sadara over the first nine months of 2020 and expected that amount to reach $400 million by the end of the year, Dow said in its most recent financial report. Whatever money the Saudi wealth fund lost on Sadara, it might earn some back through the Lucid SPAC.

Meanwhile, Liveris now serves on the board of directors at Saudi Aramco. He left Dow in 2018 under a cloud, after a settlement was reached with the SEC, which accused the company of failing to disclose about $3 million in perks it gave the CEO. Liveris returned several hundred thousand dollars to Dow, including reimbursing the company for money spent on family vacations.

“His name is not one to inspire confidence that everything will work out in a hunky-dory, kosher way,” said Francine McKenna, an accounting and audit expert and publisher of the Dig, a subscription newsletter.

Besides the financial twists, the Sadara deal raises strategic questions for potential Lucid investors. Earlier this month, Bloomberg reported that Lucid is in talks to build a car factory in the Red Sea city of Jeddah. Lucid declined to confirm or deny the report.

Saudi Arabia has been investing heavily in alternative energy projects to prepare for the oil industry’s decline as electric-powered vehicles replace internal combustion engine cars and trucks. Does it make strategic sense to build a Lucid factory in Saudi Arabia, or might it end up a white elephant like Sadara?

There’s no clear answer at present. But answering — or even asking — relies on information that SPAC retail investors rarely have access to.
 

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Discussion Starter · #6 ·
Can you buy into the Saudi Arabia's Public Investment Fund right now? That might be one way to get in early.
How does one go about buying into the Saudi Arabian Public Investment Fund?
Its essentially an allocation of public funds directed to investments, so I highly doubt the average person can judging from what it is and this description.

"The Public Investment Fund (PIF) (Arabic: صندوق الإستثمارات العامة‎) is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of $347 billion.[1] It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia. Saudi Arabia aims at transferring the PIF from a mere local authority to the largest sovereign fund in the world. Thus, PIF is working on managing assets worth $400 billion by 2020.[2] The PIF has a portfolio made up of approximately 200 investments, of which around 20 are listed on Tadawul, the Saudi Stock Exchange."

What you can do however is ride the liquidity they're providing to companies with that $400 Billion via markets impacted by it like stocks (Rivian), futures, options, and so on.
 

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Discussion Starter · #9 ·
Reuters is reporting that a deal will be announced soon with a market cap from $12 billion.

"(Reuters) - Luxury electric vehicle maker Lucid Motors Inc is getting close to a deal to go public at a roughly $12-billion valuation after veteran dealmaker Michael Klein’s blank-check acquisition firm launched a financing effort to back the transaction, people familiar with the matter said on Tuesday.

The merger between Lucid and Klein’s Churchill Capital IV Corp would be the biggest in a string of deals by electric vehicle makers such as Nikola Corp and Fisker Inc that have gone public by combining with special purpose acquisition companies (SPACs).

Churchill Capital IV has initiated talks with investors to raise more than $1 billion by selling shares in a private investment in public equity (PIPE) transaction for the deal with Lucid, the sources said. The size of the PIPE could reach $1.5 billion or more based on investor demand, one added.

These funds would be in addition to the $2 billion Churchill Capital IV raised in an initial public offering (IPO) in July on the New York Stock Exchange. Lucid and Klein agreed on the key terms of the deal, according to the sources.

If the PIPE fundraising concludes successfully, a deal could be announced as early as this month, according to the sources, who requested anonymity to discuss the confidential details. Churchill Capital IV declined to comment. Lucid did not immediately respond to a request for comment.

Churchill Capital IV’s stock spiked on the news and was trading up around 30% at $52.20.

Lucid, founded in 2007 as Atieva Inc by former Tesla executive Bernard Tse and entrepreneur Sam Weng, makes luxury electric vehicles. It was funded initially by Chinese and Silicon Valley venture investors, with additional funding from backers like state-owned Chinese auto maker BAIC Motor and Chinese technology company LeEco.

To help fund construction of a U.S. assembly plant in Casa Grande, Arizona, Lucid was boosted by a $1 billion investment in 2018 by Saudi Arabia’s Public Investment Fund.

Churchill Capital IV’s share price has surged more than 300% since Bloomberg News reported in January that it was in talks to merge with Lucid.

SPACs likes Churchill IV are shell companies that raise money in an IPO to merge with a privately held company that becomes publicly traded as a result.

Merging with a SPAC has emerged as a popular IPO alternative for companies seeking to go public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

Investors keen on SPACs are on the hunt for electric vehicle startups, hoping to catch the next Tesla Inc. While some deals such as Fisker have delivered handsomely for SPAC investors, other such as Nikola have given up their short-term gains.

Klein has raised a string of SPACs which have done deals for companies including healthcare-services company MultiPlan Corp and analytics firm Clarivate Plc."
 

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Reuters is reporting that a deal will be announced soon with a market cap from $12 billion.

"(Reuters) - Luxury electric vehicle maker Lucid Motors Inc is getting close to a deal to go public at a roughly $12-billion valuation after veteran dealmaker Michael Klein’s blank-check acquisition firm launched a financing effort to back the transaction, people familiar with the matter said on Tuesday.

The merger between Lucid and Klein’s Churchill Capital IV Corp would be the biggest in a string of deals by electric vehicle makers such as Nikola Corp and Fisker Inc that have gone public by combining with special purpose acquisition companies (SPACs).

Churchill Capital IV has initiated talks with investors to raise more than $1 billion by selling shares in a private investment in public equity (PIPE) transaction for the deal with Lucid, the sources said. The size of the PIPE could reach $1.5 billion or more based on investor demand, one added.

These funds would be in addition to the $2 billion Churchill Capital IV raised in an initial public offering (IPO) in July on the New York Stock Exchange. Lucid and Klein agreed on the key terms of the deal, according to the sources.

If the PIPE fundraising concludes successfully, a deal could be announced as early as this month, according to the sources, who requested anonymity to discuss the confidential details. Churchill Capital IV declined to comment. Lucid did not immediately respond to a request for comment.

Churchill Capital IV’s stock spiked on the news and was trading up around 30% at $52.20.

Lucid, founded in 2007 as Atieva Inc by former Tesla executive Bernard Tse and entrepreneur Sam Weng, makes luxury electric vehicles. It was funded initially by Chinese and Silicon Valley venture investors, with additional funding from backers like state-owned Chinese auto maker BAIC Motor and Chinese technology company LeEco.

To help fund construction of a U.S. assembly plant in Casa Grande, Arizona, Lucid was boosted by a $1 billion investment in 2018 by Saudi Arabia’s Public Investment Fund.

Churchill Capital IV’s share price has surged more than 300% since Bloomberg News reported in January that it was in talks to merge with Lucid.

SPACs likes Churchill IV are shell companies that raise money in an IPO to merge with a privately held company that becomes publicly traded as a result.

Merging with a SPAC has emerged as a popular IPO alternative for companies seeking to go public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

Investors keen on SPACs are on the hunt for electric vehicle startups, hoping to catch the next Tesla Inc. While some deals such as Fisker have delivered handsomely for SPAC investors, other such as Nikola have given up their short-term gains.

Klein has raised a string of SPACs which have done deals for companies including healthcare-services company MultiPlan Corp and analytics firm Clarivate Plc."
CCIV stock is up 30% because of these reports.

 

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Discussion Starter · #11 ·
Lucid Motors is nearing a deal to go public and we could expect an announcement early next week.

(Bloomberg) -- Lucid Motors Inc. is nearing a deal to go public through a merger with a blank-check company started by investment banker Michael Klein that could be announced early next week, according to people familiar with the matter.

The combined entity will be valued at as much as $15 billion, the people said, asking not to be identified because the matter is private.

The special purpose acquisition company has been in talks to raise between $1 billion and $1.5 billion in funding from institutional investors to support the transaction, the people added. The valuation and the amount of additional funding could still change based on investor demand.

A deal for the electric vehicle maker could be announced on Tuesday, two of the people said. The talks are ongoing but could still fall apart.

Klein, a former Citigroup Inc. rainmaker, will use Churchill Capital Corp IV, his largest SPAC that has raised more than $2 billion, for the transaction, the people said. Lucid is backed by Saudi Arabia’s sovereign wealth fund.

A representative for Lucid Motors declined to comment. A representative for Klein couldn’t immediately be reached for comment.

Churchill Capital Corp IV has surged more than fivefold since Bloomberg News first reported on the talks last month.

Reuters reported last week that a deal could be reached as early as this month.

Klein has played a prominent role in guiding the kingdom’s investments, serving as an adviser to its Public Investment Fund. Among other deals, he advised on the Saudi Aramco initial public offering.

Several electric vehicle makers have done deals with SPACs as startups seek to bulk up and raise cash to compete with industry leader Tesla Inc. Lucid would be one of the most established electric vehicle companies to take this route.

Lucid would also be one of the largest SPAC deals to be announced since the rush started, likely beaten only by United Wholesale Mortgage LLC’s merger with Gores Holdings IV Inc., which was valued at around $16 billion.

SPAC Parade

SPACs have also drawn a slew of prominent investors. Michael Dell, activist investor Paul Singer, Facebook Inc. co-founder Eduardo Saverin and former Xerox Corp. chief Ursula Burns all joined the blank-check parade on Friday, with at least 13 of these companies filing for U.S. IPOs to raise more than $4.5 billion.

SPACs have come to dominate IPOs this year, accounting for 63% of the almost $77 billion raised on U.S. exchanges, according to data compiled by Bloomberg. Including Friday’s newcomers, 146 SPACs that have filed since Jan. 1 are waiting for IPOs to add $40 billion to that total, the data show.

Dell, Singer, Facebook Co-Founder Latest to Join SPAC Bandwagon

Lucid targets the luxury end of the market and its chief executive officer, Peter Rawlinson, was previously Tesla’s chief engineer on the Model S sedan. Saudi Arabia’s sovereign wealth fund has invested more than $1 billion in the company.

The company was founded in 2007 under the name Atieva and spent years being more focused on battery technology than pursuing development of a luxury car. It pivoted in 2016, changed its name to Lucid, and began work on what would become its main model, the Air.

Lucid plans to start deliveries of a $169,000 electric sedan to U.S. customers in the second quarter. The Air EV, which the company says can do more than 500 miles on a single charge, will be built at a factory in Arizona. It plans to offer more affordable versions of the Air from 2022 and later will build a battery-electric SUV.
 

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Discussion Starter · #13 ·
The deal is now confirmed and various media outlets are reporting on it.

“Lucid is going public to accelerate into the next phase of our growth” following the launch of the Air, Rawlinson, who is also the Newark, California-based company’s CTO and a cofounder, said in a statement. Funds will help launch Lucid’s second model, the Gravity SUV, in 2023 and “also be used to support expansion of our manufacturing facility in Arizona, which is the first greenfield, purpose-built EV manufacturing facility in North America, and is already operational for pre-production builds of the Lucid Air.”

The transaction’s estimated $24 billion value is based on an expected PIPE offering price of $15 per share and is the largest such SPAC deal to date, Churchill Capital said in a statement.


Shares of CCIV fell a lot with news of the deal going through.


The publicly traded shares of CCIV fell nearly a third to $40.35 in volatile extended trading, giving the merged company a market capitalization of about $64 billion. By comparison, General Motors Co is worth about $76 billion.
 

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Discussion Starter · #14 ·
Lucid Motors sent out this press release after the deal was finalized earlier today.

Lucid Motors to Go Public in Merger with Churchill Capital Corp IV, Bolstering Lucid’s Vision to Redefine Luxury, Performance and Efficiency in the Sustainable Electric Vehicle Market

  • Lucid’s mission is to inspire the adoption of sustainable transportation by creating the most captivating luxury electric vehicles centered around the human experience.
  • Transaction provides additional growth capital as Lucid brings the over 500-mile range Lucid Air luxury electric sedan to market and expands rapidly to offer a broad range of electric vehicle products powered by Lucid’s proprietary electric powertrain technology.
  • CCIV and Lucid are combining at a transaction equity value of $11.75 billion.
  • The transaction includes an approximately $2.1 billion cash contribution by CCIV and a $2.5 billion, fully committed PIPE with an investor lock-up provision that binds holders well beyond closing. The PIPE is priced at $15.00 per share (a 50% premium to CCIV’s net asset value) with an implied pro forma equity value of $24 billion.
  • PIPE investment anchored by the Public Investment Fund (PIF) as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management, LLC.
  • This transaction includes the largest ever SPAC-related common stock PIPE.
  • Peter Rawlinson will continue to lead Lucid as CEO and CTO.
  • Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added in the U.S. domestically by the end of 2022.
NEWARK, Calif., and NEW YORK, NY, February 22, 2021 – Lucid Motors (“Lucid”), which is setting new standards for sustainable mobility with its advanced luxury EVs, and Churchill Capital Corp IV (NYSE: CCIV) (“CCIV” or “Churchill”), a special purpose acquisition company, announced today that they have entered into a definitive merger agreement. CCIV and Lucid are combining at a transaction equity value of $11.75 billion. The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE offer price of $15.00 per share and will provide Lucid with approximately $4.4 billion in cash (assuming no existing CCIV shares are redeemed for cash at closing).

Peter Rawlinson, CEO and CTO of Lucid, said, “Lucid is proud to be leading a new era of high-technology, high efficiency zero-emission transportation. Through a ground-up rethinking of how EVs are designed, our in-house-developed, race-proven technology and meticulous engineering have enabled industry-leading powertrain efficiency and new levels of performance. Lucid is going public to accelerate into the next phase of our growth as we work towards the launch of our new pure-electric luxury sedan, Lucid Air, in 2021 followed by our Gravity performance luxury SUV in 2023. Financing from the transaction will also be used to support expansion of our manufacturing facility in Arizona, which is the first greenfield purpose-built EV manufacturing facility in North America, and is already operational for pre-production builds of the Lucid Air. Scheduled to expand over three phases in the coming years, our Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale. Lastly, this transaction further enables the realization of our vision to supply Lucid’s advanced EV technologies to third parties such as other automotive manufacturers as well as offer energy storage solutions in the residential, commercial and utility segments.”

Michael Klein, Chairman and CEO of CCIV, said, “CCIV believes that Lucid’s superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability. We are pleased to partner with Peter and the rest of Lucid’s leadership team as it delivers the highly anticipated Lucid Air to market later this year, promising significant disruption to the EV market and creating thousands of jobs across the U.S.”

Lucid is setting new standards in performance, range and efficiency, appealing both to customers and investors committed to a zero-emission future. The company’s differentiated, proprietary EV technology, including its battery technology which is currently powering every vehicle in the world’s leading EV racing series, is underpinned by a rich portfolio of patents. Lucid’s EV technology suite was developed in-house, allowing Lucid Air to deliver outstanding efficiency with a projected range of over 500 miles on a single charge – ahead of all competitors on the market today.

Lucid’s growth will continue to benefit the communities in which it operates, particularly in California where the company is headquartered and in Arizona where the company has built its vehicle manufacturing facility from the ground up as well as its in-house EV powertrain manufacturing facility. Additionally, with directly-owned retail locations already open in California and Florida, Lucid will continue to expand its retail and service footprint across the U.S. throughout 2021. Lucid currently employs nearly 2,000 people in the U.S., and intends to continue growing quickly to support the company’s ramp in operations, with 3,000 employees expected to be added domestically by the end of 2022.

Peter Rawlinson will continue to lead Lucid along with the rest of the company’s seasoned leadership team. Churchill’s leadership team and group of operating partners will actively facilitate key introductions and relationships and provide product, design, and industry insights.

About Lucid
Headquartered in the heart of Silicon Valley in Newark, California, Lucid has benefitted enormously from California’s forward-thinking, innovation-centered business environment. Lucid’s management looks forward to continuing to operate from its California headquarters as a public company. This transaction will also support further expansion of Lucid’s direct-to-consumer retail model and Studio and Service Center locations. Currently, Lucid has 6 Studios open across the U.S. and additional sites under construction, a footprint that is scheduled to grow significantly throughout 2021. Sales expansion is planned for international markets including Europe and Middle East during 2022, and Asia Pacific thereafter.

Lucid’s completed, purpose-built manufacturing facilities are production-ready and positioned for expansion. In Casa Grande, Arizona, Lucid is already manufacturing Lucid Air pre-production vehicles in a state-of-the-art facility called AMP-1 that represents the first greenfield EV manufacturing facility in North America. Just a few miles away from AMP-1 is Lucid’s powertrain manufacturing plant, LPM-1, where Lucid produces battery packs, integrated drive units and Wunderbox two-way chargers, which present significant opportunities in energy-capture technology. In addition to its in-house technological and manufacturing capabilities, Lucid has established strong relationships with core suppliers for key materials like battery cells, including a development and supply agreement with LG Chem. Currently, Lucid’s AMP-1 facility can produce 34,000 vehicles annually, but with a total of three phases of expansion planned over the coming years, the site is expected to be capable of producing approximately 365,000 vehicles per year at scale.

As a part of its vision, Lucid intends to leverage its technology portfolio and expertise in electrification to enable a broader societal transformation towards clean energy. Lucid sees compelling potential for use of its electric powertrain technology in other OEM vehicles as well as in the aerospace, heavy machinery and agricultural industries, and also recognizes adjacent opportunities for energy storage applications in the residential, commercial and utility sectors.

About Lucid Air
Lucid’s first car, the Lucid Air, is a state-of-the-art luxury sedan with a California-inspired design underpinned by race-proven technology. Featuring luxurious full-size interior in a mid-size exterior footprint, the Air will be capable of an EPA estimated range of over 500 miles and 0-60 mph in under 2.5 seconds. Customer deliveries of the Lucid Air, which will be produced at Lucid's new factory in Casa Grande, Arizona, will accelerate in the second half of 2021 as the factory increases production. Consumers engage with Lucid through an advanced digital platform that is unique in the industry, enabling seamless digital experiences across multiple touchpoints.

Summary of the Transaction
The total investment of approximately $4.6 billion is being funded by CCIV’s approximately $2.1 billion in cash (assuming no redemptions by CCIV shareholders) and a $2.5 billion fully committed PIPE at $15.00 per share, a 50% premium to CCIV’s net asset value, anchored by the Public Investment Fund (PIF) as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management, LLC.

None of Lucid’s existing investors will sell stock in the transaction and are subject to a six-month lock up for the shares they receive in the transaction. All proceeds will be used as growth capital for the company to execute on its strategic and operational initiatives. Lucid currently has no indebtedness.

The transaction includes a $2.5 billion fully committed, common stock PIPE with a unique investor lock-up provision that runs until the later of (i) September 1, 2021, and (ii) the date the PIPE shares are registered.

In connection with the transaction, Churchill’s sponsor has entered into an agreement to amend the terms of its founder equity to align with the long-term value creation and performance of Lucid. Churchill’s sponsor has agreed not to transfer its founder equity for 18 months after the closing of the transactions.

The Board of Directors of Churchill and the special transaction committee of the Board of Directors of Lucid have unanimously approved the proposed transaction.

The transaction is expected to close in Q2 2021, subject to approval by Churchill stockholders representing a majority of the outstanding Churchill voting power, Churchill having available cash at closing of at least $2.8 billion (including the $2.5 billion of committed PIPE proceeds), the expiration of the HSR Act waiting period and other customary closing conditions.

The majority shareholder of Lucid has entered into a Voting and Support Agreement to vote in favor of the transaction, which vote would be sufficient to approve the transaction for Lucid shareholders.

Investor Presentation

A copy of the investor presentation can be found by accessing the Lucid investor page.

Advisors
Citi is serving as sole financial advisor to Lucid. BofA Securities and Guggenheim Securities are serving as M&A advisors to Churchill, and Guggenheim Securities rendered a fairness opinion to Churchill in connection with the proposed transaction. BofA Securities and Citi are serving as co-placement agents and Guggenheim Securities is serving as capital markets advisor to Churchill on the PIPE. Davis Polk & Wardwell LLP is serving as legal counsel to Lucid. Weil, Gotshal & Manges LLP is serving as legal counsel to Churchill.

About Churchill Capital Corp IV
Churchill Capital Corp IV was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and operational metrics, projections of market opportunity, market share and product sales, expectations and timing related to commercial product launches, including the start of production and launch of the Lucid Air and any future products, the performance, range, autonomous driving and other features of the Lucid Air, future market opportunities, including with respect to energy storage systems and automotive partnerships, future manufacturing capabilities and facilities, future sales channels and strategies, future market launches and expansion, potential benefits of the proposed business combination and PIPE investment (collectively, the “proposed transactions”) and the potential success of Lucid’s go-to-market strategy, and expectations related to the terms and timing of the proposed transactions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Lucid’s and CCIV’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Lucid and CCIV. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed transactions, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transactions or that the approval of the shareholders of CCIV or Lucid is not obtained; the outcome of any legal proceedings that may be instituted against Lucid or CCIV following announcement of the proposed transactions; failure to realize the anticipated benefits of the proposed transactions; risks relating to the uncertainty of the projected financial information with respect to Lucid, including conversion of reservations into binding orders; risks related to the timing of expected business milestones and commercial launch, including Lucid’s ability to mass produce the Lucid Air and complete the tooling of its manufacturing facility; risks related to the expansion of Lucid’s manufacturing facility and the increase of Lucid’s production capacity; risks related to future market adoption of Lucid’s offerings; the effects of competition and the pace and depth of electric vehicle adoption generally on Lucid’s future business; changes in regulatory requirements, governmental incentives and fuel and energy prices; Lucid’s ability to rapidly innovate; Lucid’s ability to deliver Environmental Protection Agency (“EPA”) estimated driving ranges that match or exceed its pre-production projected driving ranges; future changes to vehicle specifications which may impact performance, pricing, and other expectations; Lucid’s ability to enter into or maintain partnerships with original equipment manufacturers, vendors and technology providers; Lucid’s ability to effectively manage its growth and recruit and retain key employees, including its chief executive officer and executive team; Lucid’s ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm; Lucid’s ability to manage expenses; Lucid’s ability to effectively utilize zero emission vehicle credits; the amount of redemption requests made by CCIV’s public shareholders; the ability of CCIV or the combined company to issue equity or equity-linked securities in connection with the proposed transactions or in the future; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and the impact of the global COVID-19 pandemic on Lucid, CCIV, the combined company’s projected results of operations, financial performance or other financial metrics, or on any of the foregoing risks; and those factors discussed in CCIV’s final prospectus dated July 30, 2020 and the Quarterly Reports on Form 10-Q for the quarters ended July 30, 2020 and September 30, 2020, in each case, under the heading “Risk Factors,” and other documents of CCIV filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Lucid nor CCIV presently know or that Lucid and CCIV currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lucid’s and CCIV’s expectations, plans or forecasts of future events and views as of the date of this press release. Lucid and CCIV anticipate that subsequent events and developments will cause Lucid’s and CCIV’s assessments to change. However, while Lucid and CCIV may elect to update these forward-looking statements at some point in the future, Lucid and CCIV specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Lucid’s and CCIV’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Additional Information About the Proposed Transactions and Where to Find It
The proposed transactions will be submitted to shareholders of CCIV for their consideration. CCIV intends to file a registration statement on Form S-4 (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) which will include preliminary and definitive proxy statements to be distributed to CCIV’s shareholders in connection with CCIV’s solicitation for proxies for the vote by CCIV’s shareholders in connection with the proposed transactions and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to Lucid’s shareholders in connection with the completion of the proposed business combination. After the Registration Statement has been filed and declared effective, CCIV will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the proposed transactions. CCIV’s shareholders and other interested persons are advised to read, once available, the preliminary proxy statement/prospectus and any amendments thereto and, once available, the definitive proxy statement/prospectus, in connection with CCIV’s solicitation of proxies for its special meeting of shareholders to be held to approve, among other things, the proposed transactions, because these documents will contain important information about CCIV, Lucid and the proposed transactions. Shareholders may also obtain a copy of the preliminary or definitive proxy statement, once available, as well as other documents filed with the SEC regarding the proposed transactions and other documents filed with the SEC by CCIV, without charge, at the SEC's website located at www.sec.gov or by directing a request to CCIV.

INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Participants in the Solicitation
CCIV, Lucid and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitations of proxies from CCIV’s shareholders in connection with the proposed transactions. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of CCIV’s shareholders in connection with the proposed transactions will be set forth in CCIV’s proxy statement/prospectus when it is filed with the SEC. You can find more information about CCIV’s directors and executive officers in CCIV’s final prospectus filed with the SEC on July 30, 2020. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in the proxy statement/prospectus when it becomes available. Shareholders, potential investors and other interested persons should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.

No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
 

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Discussion Starter · #15 ·
Lucid held an investor call and live Q&A yesterday

Lucid Motors and Churchill Capital Corp IV Announce Investor Call to Discuss Proposed Merger

NEWARK, Calif., and NEW YORK, NY February 23, 2021 – Lucid Motors, which is setting new standards for sustainable mobility with its advanced luxury EVs, and Churchill Capital Corp IV (NYSE: CCIV), a special purpose acquisition company, announced today that they will hold an investor call and live Q&A with Peter Rawlinson, CEO and CTO of Lucid, and Michael Klein, Chairman and CEO of CCIV, on Tuesday, February 23, 2021 at 10:30 a.m. EST, to discuss their recently announced $11.75 billion transaction.

Date: Tuesday, February 23, 2021
Time: 10:30 a.m. EST (7:30 a.m. PT)
Videoconference: link - Conference ID: 981 8408 5468
Toll-free dial-in number: +16699006833,,98184085468#
International dial-in number: Video Conferencing, Web Conferencing, Webinars, Screen Sharing

A replay of the conference call will be available after 3:00 p.m. EST on the same day through March 15, 2021.
 

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Discussion Starter · #16 ·
Expect Lucid Motors to trade under (NYSE:LCID) when it shows up on the exchange. Its what CCIV will be changed to apparently. Although this is most likely to be the official ticker symbol, does anyone want it to be something different?
 
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