The deal could be announced as early as Tuesday and could value Lucid around $15 billion, sources told Bloomberg.
A Lucid-Churchill deal would be one of the largest special purpose acquisition company mergers, following United Wholesale Mortgage’s merger with Gores Holdings IV, which was valued at around $16 billion.
Led by Peter Rawlinson, a former chief engineer of Tesla, Lucid is supposed to deliver the luxury Lucid Air sedan, its first EV, later this year. The initial Dream Edition will cost $169,000 and drive 503 miles between charges.
But the base model of the EV is notable for drawing the attention of Tesla CEO Elon Musk last year, when Lucid set a $77,400 entry price for its Air sedan.
In October, Musk tweeted “gauntlet has been thrown down” as he announced a price cut for the Model S to $69,420 from the listed price at the time of $71,990.
Lucid Stock Looks To Debut
Shares of Churchill Capital jumped 18% to 62.22 in Monday’s stock market trading. Churchill stock added to last week’s 32% gain on the Lucid stock deal reports.
NextGen Acquisition (NGAC), which will merge with electric truck maker Xos, added 0.1% to 13.16.
The Xos transaction is set to close in the second quarter with the combined company listing on the Nasdaq under the symbol XOS.
The deal will provide Xos with $575 million in proceeds and values the company at $2 billion. It expects to be cash flow positive by 2023.
Unlike many EV startups debuting on the stock market, Xos has EVs on the road. It also offers a package that bundles commercial electric trucks and vehicle services to fleet operators for a monthly fee. Customers include UPS (UPS).
The Xos and Lucid stock deals come during a busy week for EV stocks.