![]() ![]() Insiders reveal why many are losing hope - and who's most likely to survive. The merger and listing provided 4.4 billion of additional capital, which will be used to boost its growth and increase manufacturing capacity to capitalize on expected demand. (NASDAQ: LCID) after a merger with Churchill Capital Corp IV. Investors are giving up on the 'next Tesla' as startups like Rivian and Lucid struggle. Lucid Motors became public as Lucid Group, Inc. The 24bn deal for Lucid Motors to go public struggled to cross the finish line after the blank cheque company merging with the electric vehicle start-up failed to put together enough support. Lucid Motors In 2021, Lucid followed the footsteps of many other EV startups and went public via a reverse merger with a special purpose acquisition company. It's no easy feat to build an all-star team, ramp up brand-new manufacturing processes, and deliver the most efficient EV in the world. Quality control may prove vital for any EV startup trying to outdo Tesla. Lucid has struggled to build relationships with suppliers that don't necessarily want to place their bets on a risky startup. Suit over shares Dentons received in Atieva, which did business as Lucid Motors before SPAC merger. Supply-chain issues have wreaked havoc on major automakers across the globe. Suit follows Lucid's completion of a 24 billion SPAC merger in July. While Lucid is a strong player in the world of EVs, many challenges - both specific to the company and industry-wide - could stand in the way of its long-term success. Lucid has seen success - but it still has hurdles to overcome in 2023. CNN Sans ™ & © 2016 Cable News Network.Account icon An icon in the shape of a person's head and shoulders. Market holidays and trading hours provided by Copp Clark Limited. Lucid Motors is the latest EV startup to do a SPAC merger Led by Peter Rawlinson, a former Tesla engineer who helped bring the Model S to life, Lucid Motors was founded way back in 2007. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. This makes the CCIV stock merger with Lucid Motors one of the. ![]() Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. In addition, since Lucid Motors will receive 4.4 billion at the close of the merger, the enterprise value (EV) will be 44.6 billion. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account After the deal was announced, CCIV’s share price tumbled more than 40%. Lucid’s merger has been widely anticipated, driving up the price of CCIV shares more than 470% since the start of 2021. Many companies have chosen to go public over the past year through SPACs instead of traditional IPOs, which typically invite more scrutiny from both investors and regulators. Tesla, the most valuable automaker in the world by market capitalization, 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.ĬCIV is a special purpose acquisition company, or SPAC, which is a shell corporation that has the sole purpose of buying or merging with a private company in order to take it public without a traditional initial public offering. Peter Rawlinson, the CEO of Lucid, helped develop the Model S sedan while working at Tesla from 2009 to 2012. Lucid is trying to compete directly with Tesla. The transaction will be used to expand Lucid’s Arizona factory, the company said, which it eventually expects to be capable of producing 365,000 vehicles a year. The deal left the company with a market capitalization of $9.17 billion, as of this writing, and will give more than $4 billion in cash to Lucid Motors. (Photo by Michael Loccisano/Getty Images) Michael Loccisano/Getty ImagesĬelebs including A-Rod and Ciara are getting into SPACs. For the uninitiated, Lucid Motors is an electric vehicle company (EV) with a premium focus. NEW YORK, NY - MAY 08: Sports commentator and former professional baseball player Alex Rodriguez takes part in a panel during WSJ's The Future of Everything Festival at Spring Studios on in New York City. The SPAC saw its stock price surged nearly 40 on Monday amid the potential merger news.
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