(Reuters) – Lucid Motors agreed to go public on Monday by merging with Churchill Capital IV Corp, a blank check firm backed by Wall Street negotiator and former Citigroup banker Michael Klein, in a deal that valued the combined company at $ 11,750 million. The agreement with Churchill Capital IV Corp includes a private investment of $ 2.5 billion from the Public Investment Fund of Saudi Arabia, funds managed by BlackRock (NYSE 🙂 and others. It is expected to provide Lucid with $ 4.6 billion in profit. The California-based electric vehicle maker had said in August that its goal was to start selling its first luxury model, Lucid Air, earlier this year. The electric sedan would be the first to achieve a 500-mile driving range, the company said. (https://reut.rs/3nBdh0I) Lucid Air has a starting price of $ 77,400. But it would drop to $ 69,900 as clients may be eligible for a $ 7,500 federal tax credit. After the price of the luxury electric sedan was set, Tesla (NASDAQ 🙂 CEO Elon Musk announced in October last year a price cut for the Model S sedan. He tweeted: “The glove has been thrown off!” It was last year that other EV makers such as Nikola Corp and Fisker Inc went public through mergers with blank check firms. Los Angeles-based electric vehicle firm Faraday Future Inc also announced a deal with a blank check company that will be made public earlier this year. Founded in 2007 by former Tesla Inc executive Bernard Tse and businessman Sam Weng as Atieva Inc, Lucid had received seed funding from Chinese technology company LeEco, controlled by Faraday Future founder Jia Yueting. Churchill Capital Corp IV, the fourth Special Purpose Acquisition Company (SPAC) backed by former Citigroup Inc (NYSE 🙂 banker Michael Klein, went public in a $ 1.8 billion initial public offering (IPO) in July last year. SPACs are shell companies that raise money through an initial public offering to make another company public in two years. Such mergers have become a popular alternative for companies looking to go public, with more than 200 SPAC deals collectively raising more than $ 70 billion in capital last year.
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