EV Maker Lucid Soars 27% On Merging With Michael Klein’s SPAC

© Reuters

By Dhirendra Tripathi – Shares of Lucid Motors soared 27% on their Nasdaq debut on Monday following the electric vehicle maker’s merger with Churchill Capital Corp IV, a blank-check company backed by ex-Citigroup banker Michael Klein.

The stock touched the day’s high of $29.03 in the session so far and later traded 11% higher at $26.88.

Public Investment Fund Saudi Arabia’s sovereign wealth fund had invested over $1 billion in the electric-car maker in 2018 for a substantial stake. PIF tweeted to congratulate Lucid for the listing.  

Electric vehicle manufacturing is the hottest sector on Wall Street, with investors willing to pour billions of dollars into companies that aim for a cleaner and a more sustainable future.

Black-check companies list on exchanges and use the cash proceeds of the listing to acquire startup companies, many from the tech sector. Investors are willing to invest in them because the companies are usually led by experienced executives in the field.

Lucid’s promising debut comes ahead of one of the most hyped initial public offering of the year, that of zero-commission brokerage Robinhood.

Robinhood is selling a third of its shares directly to customers through its app, the largest ever allocation for retail investors by a company.

Pricing each share at $38-$42, Robinhood wants a valuation of about $35 billion. The shares are scheduled to list Thursday.

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