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Why Churchill Capital IV Soared Over 30% Today

By Howard Smith - Jan 11, 2021 at 3:31PM

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Electric vehicle maker Lucid Motors may be making plans to go public.

What happened

Shares of special purpose acquisition company (SPAC) Churchill Capital IV ( CCIV.U ) were up 30% as of 3:20 p.m. EST, after soaring almost 40% earlier in the session. 

So what 

The SPAC formed by former Citigroup banker and Wall Street veteran Michael Klein is in talks to take electric vehicle (EV) maker Lucid Motors public through a transaction that could be valued at up to $15 billion, according to Bloomberg. 

Lucid Air electric sedan

Lucid Air electric sedan. Image source: Lucid Motors.

Last October, Klein's previous blank-check company, Churchill Capital III, combined with U.S. healthcare company MultiPlan, raising more than $3.6 billion for the provider of healthcare management solutions. 

Now what  

Lucid is one of the more well-known EV makers not yet trading publicly. Its Lucid Air luxury sedan will be available with over 1,000 horsepower and a battery range of 517 miles. That exceeds Tesla's ( TSLA -0.59% ) Model S maximum range of 402 miles. Lucid CEO Peter Rawlinson worked as chief engineer on the Tesla Model S sedan. 

Lucid's first manufacturing facility has been under construction in Arizona leading up to the first production of the Air this spring. The plant will have an initial annual capacity of 30,000 units, with phased expansion planned for up to 400,000 vehicles. 

The first model available will be the $161,500 Air Dream Edition. Subsequent models will be in production through early 2022, with the base model Air Pure listed at $69,900. 

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