Lucid Motors CEO Peter Rawlinson on Tuesday touted what he known as the electric automotive firm’s “world class tech,” however acknowledged challenges round vehicle manufacturing.
Rawlinson, a former Tesla engineering government, appeared on CNBC the morning after Lucid introduced a reverse merger with particular goal acquisition firm Churchill Capital Corp IV to go public. It’s the largest SPAC transaction involving an EV firm. SPACs are an alternative choice to preliminary public choices for companies that wish to turn out to be publicly traded shares.
CCIV shares sank practically 48% to $30 per share in early Tuesday buying and selling, earlier than recovering some of these losses, giving the merged firm a market worth of greater than $50 billion, in accordance with Reuters, larger than Ford Motor. By comparability, direct competitor Tesla has a market cap of greater than $637 billion.
Ahead of Monday night time’s announcement and subsequent inventory decline, latest deal hypothesis had pushed CCIV up 470% this yr alone. Upon completion of the deal, seen in the second quarter, Lucid is predicted to be listed on the New York Stock Exchange below the ticker LCID.
“I think that the valuation is a reflection of our technology,” Rawlinson mentioned, whereas including that extra work must be completed for Lucid to generate investor return. “What we need to do now is humbly and diligently execute and get this into production. That is what will truly drive the value,” he harassed, in recognition that manufacturing an electric automotive on a mass scale is a difficult endeavor.
Deliveries of Lucid’s first automotive, the all-electric Air, at the moment are set for the second half of this yr, a delay from its earlier forecast. Production will happen at a plant the firm constructed southeast of Phoenix in Casa Grande, Arizona. The Air begins at $77,400, with out together with the federal EV tax credit score.
Lucid initiatives it should earn $2.9 billion in EBITDA, or earnings earlier than curiosity, taxes, depreciation and amortization, in 2026, in accordance with an investor presentation. It expects to ship 251,000 automobiles that yr. In addition to the luxurious Air, Lucid plans to start producing an SUV in 2023 and ultimately “more affordable” automobiles down the street. Batteries made by Lucid’s expertise division, Atieva, are presently used on the electric racing circuit Formula E.
“I think we’ve got an ambitious but yet realizable plan. We’ve shown that we can executive,” Rawlinson mentioned. “If you look at the factory we’ve built today, we did that in record time.”
Rawlinson additionally talked about the expertise of the executives and managers round him, together with these with previous profession stops at corporations such Tesla and Apple. The investor presentation mentioned former officers from conventional automakers such Mazda, Ford and Audi are additionally on board.
“We’ve got the expertise. We’ve got the track record at delivery,” mentioned Rawlinson, who labored on the Model S whereas at Tesla. “What’s really important now, though, particularly the next few months, is to get our first product into production. That’s the great litmus.”