Luxury EV carmaker Lucid Motors is trading publicly on the NASDAQ exchange after faltering with investors late last week. Voting has finally been wrapped up and Lucid Motors has been approved to merge with special purpose acquisition company Churchill Capital IV so it can hit the exchange. Led by highly influential businessman and Churchill Chairman and CEO Michael Klein, being publicly traded should serve to infuse even more funding into one of the most notable luxury EV competitors.
The approval to list on NASDAQ almost didn’t come through in time. Late last week, a meeting to hold an investor vote at Churchill Capital had to be adjourned as there was insufficient voting to pass the motion, although those who had voted were 97% in favor of the deal. However, the motion passed over the weekend, well ahead of Monday’s bell to open trading.
With the approval, an additional $4.4 billion becomes available for the niche carmaker who intends to use the funds for accelerating growth and increasing manufacturing capacity.
Where Lucid is positioned
Lucid Motors has been seen as a true competitor in the luxury EV market, going toe to toe with Tesla and other mainstream carmakers like Mercedes-Benz and Volvo. Their vehicles target the customer experience, and that’s largely due to the team they’ve assembled. Peter Rawlinson is the CEO and CTO at Lucid Motors where he was an engineering lead on the Model S. CFO Sherry House previously held an executive finance position at Waymo while Senior VP of Design and Brand Derek Jenkins was the design director at Mazda North America.
The Lucid Motors leadership page is a ‘who’s who’ of notable industry leaders, and the models they’re preparing to build are expected to rival the best the EV market has to offer. More than 11,000 paid reservations have been made for the Lucid Air which is on schedule for its first deliveries later this year.
Rawlinson reiterated Lucid Group’s mission in the press release announcing the debut on NASDAQ. “Lucid’s mission is to truly mass industrialize electric cars and electric powertrain systems through the development of the most advanced technology imaginable. Lucid Air represents the next generation of EVs and creates new standards for interior comfort, range, efficiency and power. We are on track to meet our projected deliveries for the next two years, and we look forward to delighting our customers around the world with the best electric vehicles ever created.
“Thank you to my colleagues across the country, from our headquarters in California to our factory in Arizona, for their outstanding efforts and willingness to question what’s possible every day. I am proud of Lucid’s core foundations, built on curiosity, determination, and sound engineering principles.”
Churchill Capital Corp IV Chairman and CEO Michael Klein said, “Lucid has industry-leading technology, clear demand for its products, and is on track to deliver revenue-generating cars to customers in the second half of this year. We are excited to support Lucid’s transition into a public company and confident in its ability to address unmet needs in the automotive industry, which is moving towards electrification at a rapid pace and on a global scale.”
Skipping some of the growing pains
The timing for Lucid Motors to hit the market with luxury EVs couldn’t be better. Growth for electrified models in Q2 2021 saw a 201.1% year-over-year increase in the US according to Kelley Blue Book. The Biden Administration aims to incentivize building EV charging infrastructure and make consumer purchase incentives readily available, although the luxury market is unlikely to benefit.
Many of the growing pains were borne by Tesla who has pushed the envelope for production and technology in the sector, and carried much of the research and development costs to this point. Lucid is well aware of their position – many of their leadership team have prior experience at Tesla and other carmakers.
The litmus test will be when Lucid Motors finally delivers their vehicles. Will customers be as satisfied with the product as investors are with the company?
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