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Lucid Motors Deal With Churchill Capital IV Could Be Announced Tuesday: Bloomberg

One of the most talked about SPAC deals and electric vehicle stories could also be the highlight of the coming trading week, with a deal announcement nearing the finish line.

What Happened: Lucid Motors, rumored to be landing a SPAC deal with Churchill Capital Corp IV (NYSE: CCIV) since January, is close to a deal, according to Bloomberg.

The report says the valuation would be $15 billion for Lucid Motors, up from $12 billion reported last week.

Churchill Capital is said to be raising an additional $1 billion to $1.5 billion to finance the merger.

The $15 billion valuation would be based on the original $10 offering price of CCIV shares.

Sources told Bloomberg a deal could be announced on Tuesday.

Related Link: Michael Klein Raises $1.6B With 6th And 7th SPACs, CCIV Continues To Rise

Why It’s Important: Shares of Churchill Capital Corp IV have soared on the rumors. Several appearances by Lucid Motors executives on CNBC have led to spikes in the share price of CCIV.

The $15 valuation of Lucid Motors could make this one of the largest SPAC deals in history, potentially beating last year’s UWM Holdings (NYSE: UWMC) merger, valued at $16 billion.

Price Action: Shares of Churchill Capital Corp IV were down 9% on Friday to close the week at $52.94.

Disclosure: Author is long shares of CCIV.

Photo courtesy Lucid Motors.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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