Sources close to Lucid Motors have just confirmed the words of a Bloomberg report published last week: the Californian firm, Tesla’s big rival, is about to go public. Once the operation is completed, its valuation could reach 24 billion dollars.

Lucid Motors should certainly make the official announcement on Tuesday. A major operation, even before the marketing of its first electric car, which is expected for the second quarter of this year. It will be a sedan, the Lucid Air, and its presentation in September 2020 had made noise until Tesla, attacked in the foreground with its Model S.

An American brand, supported by Saudi Arabia

The one that could present itself as a startup nevertheless belongs to the sovereign wealth fund of Saudi Arabia, which had injected a billion dollars in 2018. Two years ago, the rumors of the corridors had put forward the idea that the company was going to be acquired by Ford. By listing on Wall Street, Lucid Motors is expected to raise more than $ 2.5 billion in a funding round including Saudi Arabia, but also BlackRock and Fidelity Management.

An additional $ 2.1 billion from the pocket of Churchill Capital Corp IV is also predicted, for a total of $ 4.6 billion raised during the deal. This company founded by Michael Klein (an investor who had previously worked on the Saudi Aramco IPO) should merge with Lucid Motors, as the automaker has chosen the path of a SPAC to go public as quickly and simply possible.

Lucid Motors on the stock market, through a SPAC

Last year, PSPCs accounted for the majority of US IPOs. Their surge is undeniable, with 63% of the $ 77 billion raised in operations in 2020, according to data from Bloomberg.

These “blank check” companies, as they are commonly referred to, are businesses that have no assets and no income, just waiting to merge with a real business that wants to win the stock markets. They are called Special Purpose Acquisition Companies, or SPAC (Special Purpose Acquisition Company).

For Lucid Motors therefore, it will most certainly be Churchill Capital Corp IV, whose share price rose 8.37% on Monday February 22, while the official announcement has not yet been made. Its SPAC was launched earlier – in September 2020 – before reaching $ 15 billion in capitalization during these first two months of 2021.

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