Peter Rawlinson, CEO of Lucid Motors, on Tuesday praised what he called “world-class technology,” but acknowledged challenges surrounding automotive manufacturing.
Rawlinson, former Tesla chief technical officer, appeared on CNBC the morning after Lucid announced a reverse merger with special acquisition firm Churchill Capital Corp IV to go public. It is the largest SPAC transaction involving an EV company. SPACs are an alternative to IPOs for companies seeking to become public stocks.
CCIV shares fell nearly 48% to $ 30 a share in early trading on Tuesday, before recouping some of those losses, giving the merged company a market value of more than $ 50 billion, larger than Ford Motor, according to Reuters. . In comparison, direct competitor Tesla has a market cap of more than $ 637 billion.
Ahead of Monday night’s announcement and subsequent stock plunge, recent deal speculation had surged CCIV by 470% this year alone. Upon closing of the deal, which will be seen in the second quarter, Lucid is expected to be listed on the New York Stock Exchange under the ticker LCID.
“I think the valuation is a reflection of our technology,” Rawlinson said, adding that more work needs to be done for Lucid to generate returns for investors. “What we need to do now is humbly and diligently implement this and get it into production. That’s what will really add value,” he emphasized, realizing that manufacturing an electric car on a large scale is a difficult undertaking.
Deliveries of Lucid’s first car, the all-electric Air, are now scheduled for the second half of this year, a delay from earlier forecast. Production will take place at a factory the company has built in southeastern Phoenix in Casa Grande, Arizona. The Air starts at $ 77,400, not including the federal EV tax credit.
Lucid expects to earn $ 2.9 billion in EBITDA or earnings before interest, taxes, depreciation and amortization by 2026, according to an investor presentation. It expects to deliver 251,000 vehicles that year. In addition to the luxury Air, Lucid plans to start producing an SUV in 2023 and eventually ‘more affordable’ vehicles on the road. Batteries made by Lucid’s technology division, Atieva, are currently used on the Formula E electric race track.
“I think we have an ambitious yet achievable plan. We have shown that we can deliver,” Rawlinson said. “If you look at the factory we built today, we did it in record time.”
Rawlinson also spoke of the experience of the executives and managers around him, including those with previous career stops at companies such as Tesla and Apple. The investor presentation said former officials from traditional automakers such as Mazda, Ford and Audi are also on board.
“We have the expertise. We have the track record in delivery,” said Rawlinson, who worked on the Model S at Tesla. “What’s really important now, especially in the coming months, is getting our first product into production. That’s the great litmus.”