If it can achieve these numbers, we are looking at average revenue growth of over 100% from 2022 to 2024. It expects that number to rise to $5.5 billion and roughly $10 billion in 20, respectively. It expects to sell 20,000 vehicles in 2022 with revenues at $2.2 billion. Lucid recently provided revenue and net income forecasts for the next three years. Additionally, it will be relying on Electrify America for its charging network instead of building its infrastructure like Tesla. Later it plans to release the Project Gravity, which will be an SUV, similar to Tesla’s Model X. Having achieved favorable leverage and scale, it will move towards the Lucid Air, a luxury sedan similar to the Tesla Model S with higher price points and several trim levels. It will break into the market with a premium offering that offers stronger margins. Lucids’s ramp-up strategy is quite similar to Tesla’s. It has set the bar low with its autonomous capabilities and will be working its way up to the advanced stages. A key differentiating element of the car is its level 3 autonomous driving capabilities, with 32 sensors. Some of these features include facial recognition, a pilot panel, Alexa integration, and a glass cockpit. Moreover, it is one of the most aero-efficient vehicles in the sector, with advanced connectivity and interior features. Its battery efficiency is at 4.5 miles/kWh with a 20-minute charge to 300-mile range. The Lucid Air’s range and efficiency are unmatched in the industry, with a range that tops out at more than 500 miles, beating the Tesla Model S. Lucid seems to have the technology to go toe-to-toe with Tesla. Under his leadership, the company has made some interesting decisions to differentiate itself from its counterparts. The company is spearheaded by Tesla’s former Vice President of Engineering, Peter Rawlinson. Hence, the real question is whether it’s worth such a lofty valuation, considering Lucid has no record of selling even a single vehicle. Therefore, Lucid is worth around $35.9 billion to CCIV stockholders (i.e., $5.78 billion / 0.161). However, as my colleague, Thomas Yeung rightly points out, CCIV stockholders own 16.1% of Lucid. At its current price, the market capitalization of the company is roughly $5.78 billion. Valuation is arguably the biggest concern for current and potential investors of CCIV stock. Members of the Davis Polk team are based in the New York and Northern California offices.Source: Dmitry Demidovich/ Azzopardi is providing intellectual property advice. Wissel is providing executive compensation advice. The Davis Polk corporate team included partners Lee Hochbaum and Emily Roberts and associates Albert Zhu, Joze Vranicar, Daniel Fox, Lucas Wozny and Michael Kostukovsky. Lucid’s EV technology suite was developed in-house, allowing Lucid Air to deliver outstanding efficiency with a projected range of over 500 miles on a single charge – ahead of all competitors on the market today. The company’s differentiated, proprietary EV technology, including its battery technology which is currently powering every vehicle in the world’s leading EV racing series, is underpinned by a rich portfolio of patents. Lucid is setting new standards in performance, range and efficiency, appealing both to customers and investors committed to a zero-emission future. The transaction is subject to customary closing conditions. The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE offer price of $15.00 per share and will provide Lucid with approximately $4.4 billion in cash (assuming no existing CCIV shares are redeemed for cash at closing). CCIV and Lucid are combining at a transaction enterprise value of $11.75 billion. Davis Polk is advising Lucid Motors in connection with its business combination with Churchill Capital Corp IV (CCIV), a publicly traded SPAC, that would result in Lucid becoming a public company.
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