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.

  • 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.

Read full story: