On Tuesday, Lucid Motors CEO Peter Rawlinson announced what he called the electric vehicle company’s “world-class technology,” but acknowledged the challenges associated with automobile production.
Rawlinson, a former Tesla engineering executive, appeared on CNBC the morning after Lucid announced a reverse merger with special-purpose acquisition company Churchill Capital Corp IV to go public. It is the largest SPAC transaction involving an electric vehicle company. SPACs are an alternative to initial public offerings for companies wishing to become listed shares.
CCIV shares plunged nearly 48 percent to $ 30 a share early in trading, before recovering some of those losses, giving the merged company a market value of more than $ 50 billion, according to Reuters, bigger than Ford Motor. In comparison, direct competitor Tesla has a market cap in excess of $ 637 billion.
Prior to Monday night’s announcement and the subsequent fall in shares, recent speculation in the deal had raised CCIV by 470% this year alone. At the end of the deal, which was seen in the second quarter, Lucid is expected to be listed on the New York Stock Exchange under the LCID marker.
“I think the valuation is a reflection of our technology,” Rawlinson said, while adding that more work needs to be done for Lucid to generate return for investors. “What we need now is to run with humility and diligence and get this to happen. That’s what will really drive the value,” he stressed, acknowledging that making a large-scale electric car is a difficult endeavor.
Deliveries of Lucid’s first car, the all-electric Air, are scheduled for the second half of this year, a delay from its previous forecast. Production will take place at a plant the company built southeast of Phoenix in Casa Grande, Arizona. The Air starts at $ 77,400, not including the federal EV tax credit.
Lucid projects will earn $ 2.9 billion in EBITDA, or earnings before interest, taxes, depreciation and amortization, in 2026, according to an investor filing. It is expected to deliver 251,000 vehicles that year. In addition to Air luxury, Lucid plans to start producing an SUV in 2023 and eventually “more affordable” vehicles down the road. Currently, the batteries manufactured by Lucid’s technology division, Atieva, are used in the Formula E electric racing circuit.
“I think we have an ambitious but achievable plan. We’ve shown we can execute,” Rawlinson said. “If we look at the factory we built today, we’ve done it in record time.”
Rawlinson also spoke about the experience of executives and executives around him, including those who had spent their careers at companies like Tesla and Apple. The investor’s presentation said former officials of traditional carmakers such as Mazda, Ford and Audi were also involved.
“We have the experience. We have a track record at the time of delivery,” said Rawlinson, who worked on the Model S while at Tesla. “What’s really important now, though, especially in the coming months, is getting our first product to be produced. That’s the big turnaround.”