#Churchill capital lucid motors free#

Lucid Motors- Churchill Capital Corp IV Transaction OverviewДЄccording to its own projections, Lucid will not turn EBITDA positive or free cash flow positive until 20, respectively.В By 20, the company expects to realize gross margins of 22-23%.В In 2026, the company hopes to generate US$2.9 billion of EBITDA and US$1.5 billion of free cash flow.В So, based on estimated 2026 EBITDA, LucidвЂ™s current implied stock market value-to-2026E EBITDA ratio is about 13.9x. Factoring in the stakes of the PIPE (Private Investment in Public Equity) investors and the original Churchill Capital SPAC investors, the deal values Lucid Motors at US$24 billion.Д«ased on Churchill CapitalsвЂ™s current share price, LucidвЂ™s stock market value after merger close could be around US$40.3 billion (1.6 billion shares times CCIV price of around US$25.18 a share). In other words, investors effectively вЂњbelieve the hypeвЂќ during the run-up to merger close, but embrace it less after the merger is completed.В If this template were to hold for Lucid, investors may want to consider adopting a more measured stance on Lucid Motors after the merger closes.ДЄ SPAC deal was finalized on February 22 between Churchill Capital and Lucid Motors.В The equity value of the February Churchill Capital-Lucid deal was announced at US$16.3 billion, and existing Lucid shareholders will receive a value of US$11.75 billion. This implies that CCIV shareholders will vote to approve the merger a few days before July 23.ДЄccording to a YCharts study of 72 SPACs, a SPAC stock generally performs the best relative to the S&P 500 during the time between the SPACвЂ™s announcement of a merger partner (e.g., CCIVвЂ™s February 2021 announcement of its agreement to merge with Lucid) and the merger closure date (~July 23 inВ this case).В After the merger closes, the resultant company tends to not perform as well as during the run-up to closing. The new company will be named Lucid Motors and trade on the NYSE under the symbol LCID.

Securities and Exchange Commission (SEC) on June 11 by Churchill Capital Corp IV (NYSE: CCIV), the merger between Lucid Motors and special purpose acquisition company (SPAC) sponsor CCIV could close on or around July 23. According to a Form S-4 filed with the U.S.