The luxury electric car startup Lucid Motors made a successful debut on Monday at the Nasdaq technology exchange in New York. The shares of the Saudi-owned and California-based startup rose sharply on the first day of trading.
Previously, a merger with the SPAC company Churchill Capital IV had taken place. Lucid received around 4.5 billion US dollars in fresh capital that is to be invested in expanding the factories. SPAC stands for Special Purpose Acquisition Company and refers to companies that raise capital in order to later merge with or take over a private company.
Lucid Motors’ good start on the stock market is an expression of the enormous expectations associated with the company. Observers believe Lucid has a promising long-term growth story. It could become the next big electric vehicle company, challenging Tesla in the premium electric vehicle space, it said.
The first electric vehicle is to be delivered
After the IPO, Lucid Motors will now have to take care of getting its first electric car on the road. This had previously been postponed several times. The startup has announced that it will begin delivering its extremely powerful Lucid Air luxury electric sedan later this year. An electric SUV called Gravity is also in the works.
Lucid Motors was founded in 2007 as an electric vehicle battery company called Atieva. In 2016, the company set out to build its own all-electric sedan and hired Peter Rawlinson, the former lead engineer on Tesla’s Model S program, to lead the project. Rawlinson has now risen to Lucid’s CEO position.
Financing problems in the past
However, Lucid initially had problems finding investors for the expensive development and production of the electric sedan. In 2018 Saudi Arabia’s state fund got in with a billion dollar deal. This cash injection and subsequent investments from the fund have given Saudi Arabia a majority in Lucid Motors.
The Lucid Air luxury electric sedan should have been rolling on European roads long ago. Originally, the vehicle announced in 2016 was supposed to come onto the market in 2020, then Lucid postponed the start to early 2021. In February, the company announced that deliveries in Europe would begin at the end of this year.