The electric vehicle startup Lucid Motors is going public via merger with the special purpose acquisition company Churchill Capital Corp IV at a valuation of $24 billion, the companies said Monday.
Why it matters: The high value of the transaction with the blank-check firm headed by former Citi exec Michael Klein underscores how Lucid could be well positioned in the growing market.
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The Silicon Valley-based company, whose CEO Peter Rawlinson is a Tesla alum, is beginning deliveries this year of its Lucid Air sedan.
The company says the luxury vehicle will have over 500 miles of range, the highest in the industry.
It's also backed by Saudi Arabia's huge sovereign wealth fund.
Were it stands: Investors in the deal in include the Saudi fund as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, and others, the announcement states.
Via Bloomberg, it's the "largest injection of capital into Lucid since Saudi Arabia’s Public Investment Fund invested more than $1 billion in 2018."
CCIV stock was trading after the announcement at $42 per share, implying a valuation for Lucid of $67 billion
What's next: The announcement said the deal will provide Lucid with $4.4 billion in proceeds that will be used to expand Lucid's manufacturing plant in Arizona, which Lucid plans to scale up in phases.
Beyond the phased-in growth of Lucid Air production, the company plans to bring an SUV into production in 2023.
"Scheduled to expand over three phases in the coming years, our Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale," the announcement states.
The proceeds will also help Lucid implement plans to become a tech supplier for other auto manufacturers, and enter the stationary battery storage market.
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