Tesla competitor Lucid confirms IPO – but luxury electric car Air comes later

As a pure manufacturer of electric cars, Tesla is no longer alone – not even on the stock exchange. In the slipstream of the pioneer, whose prices rose unstoppably last year, a number of startups, especially from China, such as Nio, Xpeng and Li Auto, have also put their shares on the public market. With Lucid Motors, another electric car startup from the USA has now announced this long-awaited step. The company is particularly interesting in that it is led by the former chief developer of the Model S. His luxury electric car Air is said to outperform Tesla on important technical data – but Lucid has now announced a postponement.

Tesla boss saw the Lucid price as a provocation

Lucid also chooses the currently frequently used route for its IPO via a merger with a company that has been founded in advance and is already listed, a so-called SPAC (for Special Purpose Acquisition Company). The partner in this case is Churchill Capital IV (CCIV for short), a company owned by the investment banker Michael Klein. According to a Reuters report, the terms of the takeover deal boast a Lucid valuation of approximately $ 24 billion, adding $ 4.4 billion of fresh capital to the company.

Its CEO and chief technology officer Peter Rawlinson played an important role in the development of the Tesla Model S, but later switched to Lucid, where he said he wanted to develop an electric car without any orientation to the internal combustion past. He himself describes the luxurious Air sedan with a huge range of more than 800 kilometers and a high charging speed of up to 300 kilowatts less than competition for Tesla than for conventional luxury cars such as the S-Class from Mercedes. Tesla CEO Elon Musk seems to see it differently. Because when Lucid announced the price for the base model of the Air, Musk called it a provocation and lowered the price for the Model S slightly below.

Launch of luxury electric car Air later

The stock exchange transaction between Lucid and CCIV had long been speculated in advance, which led to a steep rise in the price of the shelf company. With the confirmation on Monday evening, however, the price collapsed by 27 percent, reports Yahoo Finance.

This could be related to information that can be found in Lucid’s long investor presentation about the business: The company is building its own electric car factory in the USA, from which it has occasionally shown pre-production pictures. So far it has always been said that series production will start this spring. But in the presentation, without any explanation or further limitation, it is now mentioned that Lucid is “on schedule” to start the expected production and delivery of the Air in the second half of 2021.


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