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Lucid banal jumped connected Friday, the time the merger closed.
Courtesy Lucid MotorsIt’s official. Lucid Group is present 1 of the astir invaluable electric-vehicle companies connected the planet.
Lucid (ticker: LCID) and the special-purpose acquisition institution Churchill Capital IV closed their merger connected Friday. Lucid was scheduled to ringing the opening doorbell astatine the Nasdaq marketplace connected Monday morning, portion the banal awesome is changing from CCIV to LCID.
The genuinely important information astir the merger closing is that $4.4 billion comes into the company’s coffers. That is capable to prolong Lucid for years portion it commercializes its Lucid Air, to beryllium built successful an Arizona manufacturing facility.
The company’s fiscal spot is 1 crushed investors similar it. Lucid is valued astatine astir $39 cardinal based connected the 1.6 cardinal shares outstanding present that the merger is completed. That makes Lucid the 4th astir invaluable EV franchise, trailing down Tesla (TSLA), BYD (1211. Hong Kong), and NIO (NIO).
Lucid is besides a apical 15 car shaper by value, with a capitalization astir the aforesaid arsenic Ferrari ‘s (RACE).
Management is different favorable factor. Investors person assurance that CEO Peter Rawlinson, who helped Tesla motorboat the Model S, tin bring the Lucid Air to marketplace aboriginal this year.
Lucid’s ngo is to genuinely wide industrialize electrical cars and electrical powertrain systems done the improvement of the astir precocious exertion imaginable, said Rawlinson successful the company’s Monday quality release. Lucid Air represents the adjacent procreation of EVs and creates caller standards for interior comfort, range, ratio and power.
Shares weren’t doing overmuch successful aboriginal trading, though SPAC-merger stocks person a inclination to popular connected the time a awesome changes. Completing a merger removes the hazard that investors volition ballot it down, oregon that it volition beryllium derailed successful immoderate different way. Funds thin to hold until a merger goes done earlier buying shares.
Lucid shares roseate 5.9% Friday, the time the merger closed, a beardown summation compared with the broader market. the S&P 500 gained 1% and the Dow Jones Industrial Average roseate 0.7%.
Write to Al Root astatine allen.root@dowjones.com
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