Shares of luxury electric vehicle start-up Lucid Motors (LCID) - Get Lucid Motors Report rose nearly 10% on Monday following their Nasdaq debut as the race to populate the world’s roads and highways with electric vehicles continues to heat up.
At last check, Lucid shares were up 9.32% at $26.51 The shares rose as much as 11% in early trading though were halted for a time due to heavy trading volume.
The listing follows the close Friday of the merger between special purpose acquisition company Churchill Capital (CCIV) - Get Report, a blank check company started by investment banker Michael Klein. Churchill Capital will delist from the New York Stock Exchange.
The startup received about $4.4 billion in cash from the transaction, after expenses, according to reports. Saudi Arabia's Public Investment Fund has invested more than $1 billion in Lucid. It will own about 60% of the company.
The reverse-merger deal, which faced last-minute challenges being approved due to difficulties communicating to retail investors holding the stock to vote, values Lucid at around $24 billion.
It also comes six months after Lucid announced it was joining forces with Churchill in a bid to take on Tesla (TSLA) - Get Tesla Inc Report and other EV makers like Fisker (FSR) - Get Fisker Report in the U.S. and NIO (NIO) - Get NIO Inc. Sponsored ADR Class A Report and XPeng (XPEV) - Get Xpeng Inc. - ADR Report in China, though Lucid has its sights set directly on Tesla.
Special-purpose acquisition companies, or SPACs, had been all the rage at the start of the year as companies looked to take advantage of what appeared to be a more streamlined effort to go public. They remain a popular option for raising capital, with 2021 marking a banner year in SPAC deals.
The Lucid Air has a price tag of around $70,000 after tax credits, while the Air Dream Edition will cost $162,000. The EV features an autonomous driving system with 32 sensors including long-distance Lidar, which Tesla does not use.