Lucid ransom 27 trillion won…

Input 2021.02.23 10:48

Lucid Motors, an electric vehicle start-up in the US, which is expected to be a’Tesla’s opponent’, has been recognized for its corporate value of 24 billion dollars (about 26.7 trillion won).

Lucid Motors is an American electric car company founded in 2007 and plans to produce’Lucid Air’, a luxury electric car sedan this year. The goal is to produce 7,000 units this year, and gradually increase production to 34,000 units per year.

According to Bloomberg News on the 22nd (local time), Lucid Motors was recognized for its worth of $24 billion when it concluded a discussion on a merger with Churchill Capital Corp IV, a company for acquisitions (spec).

SPEC is a company that exists only on paper. Investors must first collect money, create a spec, list it, and then merge the actual companies that were targeted at the time of fundraising within the deadline. This makes it possible to easily turn an unlisted superior company into a listed company without complicated procedures.

Investors make a profit by selling the company’s stock. The merger deadline is usually two years, and if the merger fails within the deadline, SPEC has to return money to investors.

Last month, when Lucid Motors’ plans for a spec merger were announced, the market expected Lucid Motors’ enterprise value of about $15 billion. In just one month, the corporate value has increased by $9 billion (about 10 trillion won).

As Lucid Motors’ corporate value surged more than expected, Churchill Capital 4 shares fell by more than 30% in trading after the close of the market. This is because the higher the value of the merged company, the more disadvantageous it is in calculating the merger ratio for spec shareholders.