Continuing a popular trend from 2020, Lucid Motors is considering going public through a merger with a special purpose acquisitions company (SPAC).
The potential deal would see Lucid team up with one of Michael Klein’s SPACs, according to people familiar with the matter who spoke to Bloomberg on the condition of anonymity. The most likely candidate is Churchill Capital Corp IV, which raised more than $2 billion last year.
If the deal goes through, it could value the luxury electric vehicle at as much as $15 billion.
Reverse merger IPOs were the flavour of the year in the EV marketplace in 2020. A SPAC, or a “blank cheque company” is a shell company that raises money through an initial public offering (IPO) to buy an operating entity, usually within two years.
Other EV related companies to go public or announce plans to go public in 2020 through a SPAC include Nikola Motors, Lordstown Motors, Fisker, Faraday Future and XPeng Motors.