With the changing tide of the automotive market where fossil-powered engines take their last breaths, electric vehicles (EVs) are gaining momentum.
On 22nd February, the luxury EV maker Lucid Motors agreed to go public by merging with blank-check firm Churchill Capital IV Corp that appreciated the joint firm at a Pro-forma equity value of $24 billion.
The deal, which includes a transaction equity value of $11.75 billion, consists of a $2.1 billion cash contribution from CCIV plus a private investment in public equity investment of 2.5 billion from investors.
Lucid, run by an ex-Tesla engineer, is the latest company to tap the first public offering market, with investors rushing into the electric vehicle sector, spurred by the rise of Tesla Inc and emissions regulations toughening in Europe and elsewhere.
Other prominent players in the sector went public through mergers with specific purpose acquisition companies last year. When some deals such as Fisker have delivered well, others like Nikola have given up short-term gains.
Lucid has announced Lucid Air, its first sedan with a starting price of 77,400 USD, and it is expected to achieve a first driving range of 500 miles (805kms).
After Lucid priced its sedan, Tesla chief Elon Musk announced a price cut on its flagship Model S sedan.