Lucid Motors wants to backdoor listing, valued at up to 15 billion US dollars

According to foreign media reports, people familiar with the matter disclosed that the electric car manufacturer Lucid Motors is negotiating with a special purpose acquisition company operated by Citigroup’s super lobbyist Michael Klein, hoping to achieve a listing through a reverse merger.

People familiar with the matter said that the value of this transaction could be as high as $15 billion. Currently, Lucid, supported by Saudi Arabia's sovereign wealth fund, is working with financial advisors. Negotiations are still ongoing, but there is still a possibility of breakdown. A spokesperson for Lucid Motors and Klein declined to comment.

Klein currently has two special purpose acquisition companies (SPAC) that are looking for companies to merge and go public. The larger one, Churchill Capital Corp IV, raised more than US$2 billion last year, and the company is currently considering whether to reach a deal with Lucid. On January 11, Churchill Capital Corp IV shares closed up 32% to $ 13.2.

Previously, several electric vehicle manufacturers have reached agreements with special purpose acquisition companies, hoping to expand their scale and raise funds to compete with industry leader Tesla. People familiar with the matter said that Faraday Future is also in merger talks with the special-purpose acquisition company Property Solutions Acquisition Corp., while Nikola Corp. and Fisker Inc. went public last year through a blank check transaction.

Lucid will be one of the most well-known electric car companies taking this route. Lucid focuses on the luxury car market, and its CEO Peter Rawlinson was the chief engineer of Tesla Model S sedan. The company’s backers include public investment funds, Saudi Arabia’s sovereign wealth fund.

The company was founded in 2007 when the company was named Atieva. For many years, it has been focusing on battery technology instead of pursuing the research and development of luxury electric vehicles. In 2016, the company began to change direction, changed its name to Lucid, and began to develop the Air, which would later become its main model.

Lucid plans to start delivering the $169,000 electric car Air to American customers in the second quarter. The company said the car can last more than 500 miles on a single charge and will be produced at a plant in Casa Grande, Arizona. The company plans to provide more affordable Air models from 2022, and plans to produce an electric SUV later.