Electric carmaker start-up Lucid Motors to go public
US electric carmaker Lucid Motors announced that it will go public via a merger with a company that values it at $24 billion.
The California-based start-up has chosen to go through a SPAC, or “Special Purpose Acquisition Company,” which is a company with no commercial activity whose aim is to raise funds by going public, AFP reported.
The SPAC, Churchill Capital Corp IV (CCIV), contributed $2.1 billion, and Lucid also negotiated $2.5 billion from investors including Blackrock, Fidelity Management & Research LLC, Franklin Templeton and Neuberger Berman.
“The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion,” the carmaker said in a statement, and will bring in “approximately $4.4 billion in cash.”
IPOS via SPACS exploded in the US in 2020. They allow companies to go public with a windfall.
“Lucid is going public to accelerate into the next phase of our growth as we work towards the launch of our new pure-electric luxury sedan, Lucid Air, in 2021 followed by our Gravity performance luxury SUV in 2023,” the automaker’s CEO, Peter Rawlinson, said in the statement on Monday.
The funds will also enable the Silicon Valley-based company to expand its Arizona plants, which are expected to produce approximately 365,000 vehicles per year within the next few years.
Lucid employs nearly 2,000 people and hopes to hire an additional 3,000 by the end of the year.
The start-up expects to close the deal in the second quarter of 2021.
“CCIV believes that Lucid’s superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment,” Michael Klein, the SPAC’S CEO, said in the statement.
Several major automakers such as Ford and GM recently announced major investments in electric vehicles, a market dominated by California-based Tesla.
People became more concerned about the gap between rich and poor during the coronavirus pandemic, especially the young, the authors of a new global study said on Tuesday, urging governments to take steps to redress the balance.
More than 8,700 people in 24 nations were surveyed at the start and end of 2020 by the Glocalities market research agency, with the findings showing an increase in the share of respondents who thought income differences should be reduced, Reuters reported.
As the coronavirus pummeled the global economy last year, the survey also found a 10-point rise in the percentage who said decent work and economic growth were the most important means of improving quality of life.
“It has slapped people in the face and made them realize that things are not going well,” Ronald Inglehart, one of the lead authors of the study, told the Thomson
Reuters Foundation, referring to the pandemic.
“We need government intervention on a larger scale. We don’t want a state-run economy, but some of the resources need to be reallocated to balance off this powerful trend.”
Policies that will create “good-paying jobs” in the fields of child care, environmental protection and infrastructure would help address mounting frustration over income inequality Inglehart added.
Young people are particularly concerned about income disparities, the study found.
A third of respondents aged between 18 and 34 said they were more concerned about income inequality than unemployment or economic growth at the end of 2020, up from 29 percent at the start of the year - before the coronavirus had spread around the world.
“Feelings of being upset, being afraid, feeling let down, feeling like ‘I have no prospective anymore’ are on the rise,” said Martijn Lampert, who also coauthored the study.
“So this requires very wise and just government interventions to channel this unrest in a positive way.”
Inglehart said he sees evidence of such sentiments among the students he teaches at the University of Michigan.
“The job market is dismal ... My best students, the stars, they’re finding jobs at a lower level than they’re anticipating. And the ones who aren’t stars are getting nothing,” he said.
The global economy is seen shrinking 3.5 percent last year, according to the latest estimates by the International Monetary Fund, and numerous studies have shown how the global health crisis has exacerbated economic inequalities.
As a result of the pandemic, the number of people living in poverty has doubled to more than 500 million, according to a report issued last month by the charity Oxfam.
Meanwhile, the collective wealth of the world’s billionaires rose $3.9 trillion between March and December 2020 to reach $11.95 trillion, the report said.