The investing world’s eyes will be fixated at the payout from the recent electric-vehicle startup boom in North America when Lucid Motors Inc. is set to list publicly after its merger with a special-purpose acquisition company (SPAC) on Friday.
Luxury electric vehicle maker Lucid Motors had, in February this year, agreed to go public by merging with special-purpose acquisition company Churchill Capital IV Corp, according to Reuters.
For the latest headlines, follow our Google News channel online or via the app.
Wall Street Journal (WSJ) says that oil major Saudi Arabia will become the biggest winner from this IPO, likely to record a profit of nearly $20 billion on a $2.9 billion investment made in 2018 in the San Francisco Bay Area electric-car maker Lucid Motors Inc.
According to the WSJ’s estimates, the Saudi Public Investment Fund (PIF) will own over 60 percent of the company, which is expected to have a market capitalization of about $36 billion, based on the SPAC’s current share price.
Even though Lucid will only start production later this year, its expected market capitalization is nearly twice the valuation of Nissan Motor Co. and about two-thirds that of Ford Motor Co., which delivered more than 4 million cars last year, WSJ reported.
Back in 2018, under the directive of Saudi Crown Prince Mohammed bin Salman and as per the plan for diversifying the Kingdom’s economy under Vision 2030, PIF had invested in tech startups, including a $3.5 billion investment in ride-hailing company Uber Technologies Inc.
The PIF had also invested in many big-ticket projects and institutions, such as the Blackstone Infrastructure Fund, Virgin Galactic, and the Softbank Vision Fund.
On track to start production
Investors have been rushing into the EV sector, a Reuters report noted, spurred by the rise of Tesla Inc and with emissions regulations toughening in Europe and elsewhere.
Lucid said it is on track to start production and deliveries in North America in the second half of this year with Lucid Air, its first luxury sedan. It had previously said it planned to start its deliveries in spring of 2021.
As part of the deal with PIF, Lucid committed to build a factory in Saudi Arabia, according to the company’s securities filings.
According to a Reuters report, Lucid, which plans to build vehicles at its factory in Arizona, aims to deliver 20,000 vehicles in 2022 and 251,000 in 2026 by adding other models like an electric sport utility vehicle.
The luxury electric vehicle maker expects a revenue of $22 billion in 2026.
With a starting price of $77,400, the sedan is slated to be the first to achieve a 500-mile (805 kilometers) driving range.
Saudi PIF-backed electric car company Lucid Motors enters Saudi Arabia, UAE marketsLucid Motors, a US-based electric car manufacturer, announced that it would be entering select markets in the Middle East, starting with Saudi Arabia ... Gulf
Lucid Motors to go public in $24-bln mega SPAC dealLuxury electric vehicle maker Lucid Motors on Monday agreed to go public by merging with blank-check firm Churchill Capital IV Corp in a deal that ... Financial Markets
Saudi’s PIF invests more than $1 bln in electric carmaker Lucid MotorsSaudi Arabia’s Public Investment Fund (PIF) has agreed to invest more than $1 billion in Lucid Motors, adding to the emerging competition facing ... Technology
Honda changing course, will build its own electric vehiclesAlthough General Motors will build Honda’s first two fully electric vehicles for North America, the Japanese automaker plans to change course and ... Energy
Dubai sees uptake in electric vehicles through free-charging initiativesDubai has recently seen an increase in the number of registered electric vehicles (EV) due to the initiatives led by the city’s Electricity and Water ... Technology
Volvo pledges to produce only electric vehicles by 2030Volvo says it will make only electric vehicles by 2030. But if you want one, you’ll have to buy it online.For the latest headlines, follow our Google ... World News
China’s Huawei plans to launch own-branded electric vehicles: SourcesChina’s Huawei plans to make electric vehicles under its own brand and could launch some models this year, four sources said, as the world’s largest ... Technology
Ford says it will invest $1bln to convert Germany plant to build electric vehiclesFord says it will spend $1 billion to modernize its Cologne, Germany, manufacturing center, converting it into a European electric vehicle factory.For ... Energy
GM to invest $2.2 bln in Detroit to build electric vehiclesGeneral Motors is spending $2.2 billion to refurbish an underused Detroit factory so it can build a series of electric and self-driving vehicles, ... Technology