(Source: Lucid Motors website)
Tesla's biggest US rival, Lucid Motors, said it is now considering the possibility of building a factory in China, the Shenzhen-based Securities Times reported Wednesday.
The report said Lucid is working to launch a new all-electric luxury sedan, the Lucid Air, in 2021 and a subsequent Gravity high-performance luxury SUV in 2023.
However, the company's models have no specific plans to enter the Chinese market yet, the report said.
On Monday, financier Michael Klein's blank check company Churchill Capital IV Corp (NYSE: CCIV) said it would merge with Lucid in a deal that values Lucid at $24 billion.
The deal would bring about $4.4 billion in cash to the Tesla rival, and Lucid Motors plans to use the money to bring its cars to market and expand its factory in Arizona.
Lucid has not yet started producing cars and plans to start delivering its ultra-luxury all-electric sedan only later this year.
Lucid forecasts 20,000 vehicle deliveries and $2.2 billion in sales in 2022.
Revenues are expected to grow to $5.5 billion and $9.9 billion by 2023 and 2024, respectively, according to Lucid's website. The company expects EBITDA to be $592 million in 2024.
The deal is the largest capital injection for the electric car company since the Saudi Public Investment Fund invested more than $1 billion in Lucid Motors in 2018. The agreement between the two companies includes $2.5 billion in PIPEs (private investment in public stock).
The companies said the placement was priced at $15 per share, a 50 percent premium to Churchill Capital's net asset value, which translates into a pro forma equity value of about $24 billion. The combined company is trading at an equity value of $11.8 billion. The transaction is expected to close in the second quarter.
Lucid's first product, called Lucid Air, features a 100 kWh battery pack with an optional 130 kWh pack.
It will have a maximum range of 832 km under EPA conditions, and its highest-powered version will have a maximum power of 1,013 hp and an acceleration time of just 2.5 seconds from 0-96 km/h.
The Lucid Air uses a 924-volt high-voltage system, which is the highest voltage of any mass-produced pure electric battery pack. According to the company's plans, in 2023, the company will also launch an all-electric SUV.
The Lucid Air is currently available in three models, the Air Pure starting at $69,900, the Air Touring starting at $87,500, the Air Grand Touring starting at $131,500 and the Air Dream Edition Limited Edition starting at $161,500.
With its new factory currently located in the desert of Arizona, USA, Lucid is initially aiming to produce 34,000 vehicles per year and seeks to increase annual production to at least 85,000 vehicles by 2023.
The Lucid Air is seen as a direct competitor to the Tesla Model S, and Lucid's headquarters is just over 20 miles from Tesla's. Lucid Motors' CEO Peter Rawlinson was the lead engineer on the Tesla Model S.
Tesla rival Lucid Air expected to be put into production by yea-end