9 Key Takeaways From The Lucid Motors SPAC Merger

Lucid Motors confirmed Monday evening it will be going public via a SPAC merger with Churchill Capital Corp IV CCIV.

Lucid Motors filed an investor presentation late Monday night and company CEO Peter Rawlinson appeared on CNBC Tuesday morning. Here are some key takeaways for investors to consider for Lucid Motors.

1. Valuation: The SPAC deal values Lucid Motors at $11.75 billion. An oversubscribed PIPE deal that saw shares priced at $15 valued the company at $24 billion.

“Valuation is a reflection of our technology,” Rawlinson said on CNBC.

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The $15 pricing on the PIPE was unique as all existing deals had PIPEs done at the offering price prior to Monday: “This is unprecedented in the history of SPACs," Rawlinson said.

Current Churchill Capital Corp IV shareholders will own 16% of Lucid Motors and PIPE investors will own 10% of the company.

2. Production: Rawlinson highlighted the company building its Arizona factory in record time. The factory was the first purpose-built electric vehicle facility in North America.

The factory can produce 34,000 units annually. Planned expansion will take this factory to production capabilities of 365,000 units annually.

3. Deliveries: Lucid Motors is on track to begin delivering the Lucid Air in the second half of 2021.

Lucid Motors reports it had over 7,500 reservations as of February, representing $650 million in sales.

4. Sales Model: Lucid Motors will follow a direct sales model with online sales and retail locations. The company has six retail locations open now in California and Florida. There are nine more stores in development targeting the states of New York, Illinois, Virginia, Arizona and Massachusetts.

The company is planning on building out its retail store network in Europe and the Middle East in the first half of 2022.

5. Charging: CNBC's Jim Cramer highlighted the charging speeds from Lucid Motors in the interview with Rawlinson.

“This is next generation technology,” Rawlinson said. The CEO said the company’s charging technology is a huge differentiator. Lucid Motors has a partnership with Electrify America, owned by Volkswagen AG VWAGY.

A plan from Electrify America will include the first year of charging for free according to the investor presentation. Lucid Motors will also be compatible with chargers from ChargePoint and EVGo.

Lucid also has two-way charging with vehicle to grid, which could allow a user the ability to run their house off the grid.

Related Link: Churchill Capital Corp IV SPAC Pops On Lucid Motors Rumor

6. Competition: Tesla Inc TSLA is singled out as a competitor in the company’s investor presentation. Lucid Motors is valued at less than 2% (based on $10 price point) of Tesla’s market capitalization.

Rawlinson is a former Tesla Chief Engineer and worked on the Tesla Model S.

The presentation from Lucid shows several comparisons to Tesla. The Lucid Air has a range of 517 miles compared to the Tesla Model S, which has a range of 412 miles. Lucid Motors says the Lucid Air has a longer range and faster charging than its competitors.

“Efficiency is the ultimate measure of EV technology and Lucid is the clear winner,” the presentation says.

While the company recognizes its metrics to competition, it also highlights that the electric vehicle market is growing.

“Everybody wins, the planet, the customers,” Rawlinson said. He welcomed the competition from existing and new entrants to the electric vehicle market.

7. New Vehicle Models: Lucid Motors highlighted new models and new segments it could break into in the future as part of its investor presentation.

The company will introduce the Lucid Gravity in 2023, its electric SUV model: “Project Gravity redefines sport and utility for luxury SUVs.”

By 2030, Lucid Motors plans on introducing more sedans and SUVs, according to the presentation.

8. Energy Storage: In the future, the company can expand beyond electric vehicles. A slide in the presentation highlights the company’s early prototype for energy storage systems and also being a tech supplier to other OEMs.

9. Future Expansion: The potential to expand into aircraft, eVTOL, military, heavy machinery, agriculture and marine sectors is also highlighted on the investor presentation.

CCIV Price Action: Shares of Churchill Capital Corp IV are down 32% to $39.13 on Tuesday. 

Disclosure: The author is long shares of CCIV.

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