is now one of the most valuable electric car companies in the world.
Lucid (ticker: LCID) and special acquisition firm Churchill Capital IV completed their merger on Friday. Lucid was set to ring the opening bell in the Nasdaq market Monday morning as the stock symbol changes from CCIV to LCID.
The really important fact about the merger closing is that: $4.4 billion goes into the company’s cash register. That’s enough to support Lucid for years as it markets its Lucid Air, which will be built in an Arizona factory.
The financial strength of the company is one of the reasons investors like it. Lucid is valued at approximately $39 billion based on the 1.6 billion shares outstanding now that the merger is complete. That makes Lucid the fourth most valuable EV franchise, behind
(1211. Hong Kong), and
Lucid is also a top 15 automaker by value, capitalized roughly the same as
Management is another beneficial factor. Investors are confident that CEO Peter Rawlinson, who helped Tesla launch the Model S, can bring the Lucid Air to market later this year.
Lucid’s mission is to truly massively industrialize electric cars and electric powertrain systems through the development of the most advanced technology imaginable, Rawlinson said in the company’s press release on Monday. Lucid Air represents the next generation of EVs, setting new standards for interior comfort, range, efficiency and power.
Stocks didn’t do much in early trading, though SPAC merger stocks tend to pop the day a symbol changes. Completing a merger removes the risk that investors will reject it or otherwise derail it. Funds tend to wait for a merger to go through before buying shares.
Lucid shares rose 5.9% Friday, the day the merger closed, a strong gain against the broader market. the
got 1% and the
Dow Jones Industrial Average
Write to Al Root at email@example.com