Lucid Motors and Churchill Capital IV (CCIV) affirmed a consolidation arrangement to take the California-based EV organization public. Shares of Churchill Capital tanked as much as 27% after the news was reported on Monday night. The stock’s after-hours performance is an inversion from past sessions when it mobilized over reports of approaching a deal.

The transaction values Lucid at an initial Pro-forma equity value estimation of roughly $24 billion at the PIPE offer cost of $15.00 per share and will provide Lucid with around $4.4 billion in cash (expecting no current CCIV shares are recovered for money at shutting).

Speculation over a deal has been circling for over a month. In mid-February shares of Churchill Capital IV, led by investment banker Michael Klein, flooded 30% after a report of an approaching agreement. On Monday the stock acquired double-digit percentages after a Bloomberg report said an agreement could come when Tuesday.

The electric vehicle producer is backed by Saudi Arabia’s sovereign wealth fund. A deal with Churchill Capital IV is one of the highest-profile EV SPAC deals since Nikola (NKLA) and Fisker (FSR) appeared publicly a year ago.

Lucid Motors has been firmly watched since it is contending in the electric luxury sedan space. The organization’s CEO and CTO Peter Rawlinson was the chief engineer at Tesla (TSLA) for the model S preceding joining Lucid Motors in 2013.

Lucid Motors set its first US production factory in Casa Grande, Arizona. The organization plans to meet production goals for its most costly vehicle, the Air Dream Edition this year.

“I think it’s really important that we start at a high-end position as a true luxury brand. I’m a great believer that the first product defines the brand in way Tesla model S defined Tesla as a brand,” Rawlinson said Yahoo Finance in October of last year.

In an email to Yahoo Finance on Monday before a deal declaration, Lucid’s official statement read “Lucid Motors has always been clear about its intent to go public at some point in order to accelerate the adoption and global availability of Lucid’s exclusive electric vehicle and sustainability technologies…Currently, our focus continues to be on bringing Lucid Air to production in Spring of this year, with the strong support of key investors and our partners at the Public Investment Fund.”

Lucid likewise affirmed it will be opening a showroom in New York City’s popular meat packing district, simply blocks away from Tesla’s showroom.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No California Times journalist was involved in the writing and production of this article.

Topics #CCIV stock #Churchill Capital IV #Lucid Motors