Lucid Air.
Shares of Churchill Capital IV spiked as a lot as 19% on Monday after a Bloomberg report mentioned a merger with the electric-vehicle maker Lucid Motors might come as quickly as Tuesday.There have been rumors a few merger of Churchill Capital IV, a special-purpose acquisition firm, and Lucid for over a month.A deal might use $2 billion in money raised by Churchill Capital IV’s preliminary public providing and $1 billion to $1.5 billion from institutional buyers to help the transaction.The mixed entity may very well be valued at roughly $15 billion, sources advised Bloomberg.

Churchill Capital IV’s inventory has skyrocketed greater than 425% since reviews first got here out of talks between the Michael Klein-backed SPAC and Lucid Motors final month.Investors are enthusiastic about Lucid’s prospects: It’s an actual competitor to Tesla, and critics have praised its new all-electric car, the Lucid Air. The firm is ready to launch its flagship mannequin, the Air Dream Edition, within the second half of 2021.Lucid is backed by Saudi Arabia’s sovereign wealth fund, which acquired a 67% stake within the EV maker for about $1.3 billion in 2018. Bloomberg reported earlier this yr that Lucid was in talks to construct an EV manufacturing facility close to the Red Sea metropolis of Jeddah.In December, Lucid accomplished its first manufacturing facility, in Casa Grande, Arizona, the place it expects to finally produce 400,000 automobiles yearly.If the merger goes by way of, it might proceed a yr of monumental development for SPACs. They’ve overshadowed conventional IPOs in 2021, accounting for 63% of the practically $77 billion raised on US exchanges, in accordance with knowledge from Bloomberg.

Churchill Capital IV is one in all seven SPACs backed by Klein, a former Citigroup govt. Earlier this month, Klein raised $1.6 billion for his sixth and seventh SPACs.Churchill Capital IV traded up 13.06%, at $59.81, at 10:38 a.m. ET.Markets Insider