Lucid Motors is only months away from the delivery of its new EV Lucid Air EV. However, latest news suggests that the company might be up for a merger.
Talks about the potential merger between Lucid Motors and a SPAC company run by Michael Klein, former Citigroup rainmaker has begun circulating. Sources suggest that the electric vehicle manufacturing company might go public with the official news of the merger prior to the launch of its new Air EV into the market.
The matter is considered to be private as mentioned by one of the insider sources who also said that the total value of the transaction can be added up to $15 billion. The company has the financial backing of the sovereign wealth fund of Saudi Arabia. For this merger project, the company is carrying on discussions with several financial experts.
Lucid Motors To Tie Up With Klein’s SPAC Deal
The insider source further adds that the talks are not final yet. There are chances that the deal might fall through and not happen altogether.
Officials from Michael Klein run SPAC as well as Lucid Motors have been asked for a comment on the matter. However, they have remained tight-lipped regarding the issue till date.
Michael Klein currently owns two SPACs that require deals. The largest between the two, Churchill Capital Corp IV is likely to be a part of the Lucid Motors deal, separate sources conjectured. This vehicle raised a total of $2 billion previous year.
EV manufacturing companies getting into deals with SPAC is not happening the first time with Lucid Motors. However, prior to this, the companies that engaged in such deals were start-ups. Lucid Motors is perhaps one of the established companies to opt for this path. Companies choose this route to stand in the way of Tesla’s monopoly in the EV market.