"LCID" to begin NASDAQ trading on Monday, after Lucid Motors and Churchill Capital pass SPAC merger
After a rocky start to its shareholder vote last Thursday, NASDAQ reports that the SPAC deal between Lucid Motors and Churchill Capital IV successfully passed on Friday last week.
The Lucid Air promises performance, style, and exceptional quality, but can it beat Tesla at its own game? Image: Lucid
After a rocky start to its shareholder vote last Thursday, where the company failed to receive enough votes from retail investors to approve its merger with Churchill Capital IV, NASDAQ reports that the deal successfully went through on Friday, after Churchill Capital IV and Lucid extended the deadline for shareholders to vote, and executives pleaded with investors to vote in favor of all proposals in order to cross the finish line.
NASDAQ reports that some investors saw the move as highly dilutive based on misinterpretations of Lucid’s regulatory filings, which details a 2.61 exchange ratio of Churchill Capital IV shares to Lucid stock. This high exchange ratio is not actually relevant to the SPAC's public investors, who incorrectly feared that excessive dilution could adversely impact the value of the investment. Lucid will receive approximately $4.4 billion (after transaction expenses) in cash from the SPAC merger.
"Lucid has further increased its momentum as we gear up to make the first customer deliveries of our Lucid Air lineup of electric sedans later this year," Lucid CEO Peter Rawlinson said in a statement. "We are making significant investments in the long-term growth and innovation of our company, and we will continue to bring to bear world-class technology to positively impact mankind's transition to sustainable mobility."
Lucid recently opened its NYC design studio in the Meatpacking District. Image: Lucid
Auto manufacturing is an expensive business, and even more so for a startup like Lucid that doesn’t have a bank account the size of Volkswagen’s or General Motors’ to throw at electromobility. This Special Purpose Acquisition Company (SPAC) trend on Wall Street has been taking off in the automotive sector, with companies like Fisker and Nikola also receiving an injection of funds through the SPAC investment process. Essentially a shell company, a SPAC is set up for the sole purpose of raising capital to acquire another company. Generally, a SPAC’s only asset is the money raised in its own IPO.
Lucid’s first EV, the Air, is currently undergoing final testing and development, and the company plans to officially commence customer deliveries “in the second half of 2021”. CEO Peter Rawlinson has already delayed deliveries from (northern hemisphere) Spring this year, citing the COVID-19 pandemic as an impediment to that target date. The Air is a luxurious, Mercedes-Benz S-Class rival, initially launching in the highest specification, with 500 miles (805 km) of range and over 1,000 hp (745 kW). More affordable variants will be launched in due course, as rivals to Tesla’s Model S, BMW’s i4 Gran Coupe, and the Mercedes-Benz EQE. Pricing for the Lucid Air in the United States is as follows:
Air Dream Edition - $169,000
Air Grand Touring - $139,000
Air Touring - $95,000
Air Pure - $77,400
Source: NASDAQ
Lucid Motors reveals Arizona factory paint shop; targets 400,000 units per year across four models
On the back of news that Tesla Motors has begun construction on what may be the world’s most advanced automotive paint shop, Lucid Motors has released details on its paint shop under construction in its AMP-1 factory, located in Casa Grande, Arizona.
Lucid’s Arizona factory to produce high-end paint finishes, starting with 30,000 Lucid AIR Sedans per year
On the back of news that Tesla Motors has begun construction on what may be the world’s most advanced automotive paint shop, Lucid Motors has released details on its own paint shop currently under construction in its AMP-1 factory, located in Casa Grande, Arizona.
Lucid Motors’ competitor Tesla has been criticised in the past for many poor (and downright ghastly) paint jobs over the years. Recently however, Sandy Munro was thoroughly impressed with the exterior paint on a brand new 2021 Model—anecdotal evidence of course—which implies things may be improving in Tesla’s paint shop and its QA checks.
For many, Porsche has always been held up as among the best in the business when it comes to high-grade exterior finishes, and Lucid is clearly watching the big German manufacturers and Tesla closely to ensure its vehicles’ paint matches the company’s luxury image.
A Lucid Air after what appears to be the pretreatment and sealer phases of the painting process.
According to Mike Boike, Director of Manufacturing, “We're competing against the best in the world, and we know it.” he added. “So the processes and the materials that we use are nothing but the best in the world. We've got the latest and greatest paint process. We have the latest and greatest materials, and we have a high-powered team of engineers and manufacturing professionals.”
Lucid’s paint shop process involves the following steps:
Pretreatment and Electrocoat: As each Lucid Air comes out of the body shop, it gets rigorously cleaned. Then we apply both a thin film coating and electrodeposition coating, which protect the entire body structure from corrosion.
Sealer: Next we thoroughly seal the vehicle to prevent any type of air or water intrusion that could create road noise or water leakage into the car.
Paint: Once the unit is sealed and sanded, it’s then sent into the paint booth. Here, we’ve integrated the latest innovative process and materials technologies that result in a flawless, luxurious finish.
Finesse: Finally, post-bake, the car is brought to the finesse deck where a team inspects and polishes it to perfection before approving to ship to the customer.
Lucid’s automated painting process
Lucid plans to commence building the Air sedan in 2021, and is aiming for 30,000 vehicles in its first full year of production. According to the company, it’s more economical to build the paint shop based on the eventual full capacity of the plant, which is 400,000 units per year.
Lucid’s second model line, a luxury SUV codenamed “Project Gravity”
Lucid’s second vehicle will be a luxury SUV currently codenamed Project Gravity, which will arrive in 2023.
Source: Lucid Motors
Lucid Air Named Best Car Design for 2020 in the Good Design Awards
The Lucid Air has been named Best Car Design for 2020 in the Good Design Awards. One of the world’s most prestigeous design prizes, The Good Design Awards have been an annual fixture since 1950, and are hosted by The Chicago Athenaeum Museum of Architecture and Design.
The Lucid Air was awarded a Good Design Award for 2020 by The Chicago Athenaeum.
Images: Lucid Motors
The Lucid Air has been named Best Car Design for 2020 in the Good Design Awards. One of the world’s most prestigeous design prizes, The Good Design Awards have been an annual fixture since 1950, and are hosted by The Chicago Athenaeum Museum of Architecture and Design.
Christian Narkiewicz-Laine, architecture critic and chief curator of The Chicago Athenaeum’s Good Design® awards said: “In a word: Bold. The new battery-electric Lucid Air is an aesthetic shotgun approach to vehicle design that will clearly transform, if not revolutionize the transportation industry in the future,”
“Designed for Lucid Motors by former Audi-Volkswagen designer Derick Jenkins, the new luxury sedan is sleek and elegant, sculpted like a streamlined aircraft, while its futuristic details exit in a very clean and orderly approach, something more relatable, clearly future-focused, but still enduringly smart and sophisticated.”
“What’s more, the new electric car, unofficially dubbed ‘Tesla killer,’ is also giving Tesla a run for the money in terms of pricing, technology, and performance.”
“The California-based startup Lucid Motors is a game-changing electric vehicle in the near future, standing out from the fold with proven performance and a new vision developed by industry veterans, skilled designers and, crucially, all the financing in the world,” Narkiewicz-Laine continues.
“Jenkin’s amazing muscular design for Lucid Air is a stunning break-through vehicle from the otherwise dull, monotonous American car industry as we know it.”
While there is no doubt the Lucid Air nails its design brief, I would rather wait until the vehicle has had a successful market introduction and is in the hands of journalists and customers before dubbing it a ‘Tesla killer’ or ‘game-changer’. Many manufacturers, from established automakers like Nissan and Mercedes-Benz, to fresh startups such as Fisker and Rivan have exciting EV concepts in development.
Their financial success and ability to compete with Tesla depends on how quickly — and profitably — they can scale their EV manufacturing. A task that has taken Tesla many years to perfect.
You can read more about the Lucid Air’s Good Design Award below:
Source: The Chicago Athenaeum Museum of Architecture and Design
Top 5 Battery Electric Vehicles to Look Forward to in 2021
For fans of the premium German automotive establishment, it would be hard to go past a svelte 4-door EV from Ingolstadt. Audi plays it safe with a traditional long hood, wide grille and aggressive vent design — one doesn’t want too many people to know one is driving an electric vehicle — but I’ll forgive these design features that serve very little practical function on an EV because of the wide hips, high-door line/low roof line and beautifully shaped rear.
It was difficult to narrow this list down to five vehicles; we would have liked to include many other makes in this list but have restricted it to our favourite vehicles that have a high probability of hitting the market in 2021. It’s going to be an exciting year for Electric Vehicles, with Tesla looking to move into the Indian Market, Volkswagen ramping up its ID.3 and ID.4 production, NIO entering the year with good cashflow and healthy sales, worldwide release of luxury models from Chinese automakers BYD and Xpeng, and more.
Here's the top 5 battery electric vehicles to look forward to in 2021:
5. Tesla Model Y
Tesla’s Model Y is a common sight on US roads, but its international launch in 2021 is expected to drive big profits for Tesla.
Image: Tesla Motors
Tesla’s styling isn’t exactly scintilating, but it does age well, and is more a victim of its popularity than anything else. The Model Y has been on sale in the US since March 2020, and has proven popular with US consumers. It just hit the market in China as production began at Gigafactory Shanghai in December, and Tesla stores across the country have seen long lines to experience the vehicle.
The Model Y takes the Model 3’s formula, and elevates it — quite literally — to a new level. Consumer preferences have shifted toward SUVs, and globally sales of the jacked up vehicles make up over 50 per cent of the passenger car market.
It’s easy to see why the Model Y has been such a sales success; it’s $45,000 USD base price gives you a car with 483km (300mi) range, Tesla’s brilliant autopilot system, regular over the air updates, all the tech and gadgets consumers love from the brand, and the best fast charging network in the world.
The Model Y is sure to continue its sales success, as Europe, Australia and India await its introduction in 2021.
4. Audi E-Tron GT, E-Tron GT RS
Audi’s E-Tron GT is one svelte looking low-slung EV.
Image: Audi AG
For fans of the premium German automotive establishment, it would be hard to go past a svelte 4-door EV from Ingolstadt. Audi plays it safe with a traditional long hood, wide grille and aggressive vent design — one doesn’t want too many people to know one is driving an electric vehicle — but I’ll forgive these design features that serve very little practical function on an EV because of the wide hips, high-door line/low roof line and beautifully shaped rear.
The E-Tron and E-Tron RS are based on Porsche’s Taycan, but it’s expected that Audi will heavily re-engineer the platform for its own models, and that the Renn Sport version will have even more power than Porsche’s Taycan Turbo S. Audi’s press department promises up to 434 kW (590 hp) and a 0-100kmh (0-62mph) of 3.5 seconds, and an interior familiar to Audi owners, but dressed in sustainable materials and vegan ‘leather’.
The Volkswagen Audi Group is now quite experienced at producing EVs, with a number of popular models on sale. I am confident that the development of the E-Tron will be smooth for Audi, and that it will enter the market in late 2021, pending any (futher) catastrophic global events for the company or the world.
3. Rivian R1T, R1S
Rivian’s R1T promises a no-compromise adventure-focused EV.
Image: Andy Hedrick
Surely Rivian is just another automaker startup with big dreams and impossible odds? Many back Rivian as the next Tesla in the marketplace for good reason; Chief Executive RJ Scaringe is an engineer who completed his training at MIT’s prestigious Sloan Automotive Lab, and plans for Rivian to design and build everything in house.
Rivian has received close to $3 billion in funding from the likes of Saudi-backed JIMCO, Cox Automotive, Ford and Amazon, and It’s R1T Pickup and R1S SUV plan to beat Tesla to the line of the popular — and profitable — global SUV and pickup truck market.
With in-house designed battery, platform, thermal system, drivetrain and software, Rivian will likely hold a similar competitive advantage to Tesla against manufacturers who simply outsource component design to third parties. Rivian is planning a range of battery sizes from 105kWh to a massive 180kWh, and up to 680km (400mi) range, but has yet to provide any range figures for a vehicle towing a large load. When you get to your remote campsite in a national park, how do you charge up? The company plans a high-speed charging network at popular camping, hiking and kayaking sites in parks around the US.
The R1T and R1S are handsome vehicles, and are sure to attract the EV buyer who finds Tesla’s Cybertruck a little ostentatious. The Launch Editions of the R1T and R1S start at $75,000 and $77,500 USD respectively, and include a 300mi range, quad-motor setup, a 5 ton (11,000lbs) towing capacity, the offroad package, 4x 110V and 3x12V outlets, and options that including a full camp kitchen that slides out of the side of the vehicle.
2. Lucid Air
The Lucid Air in its top specification produces 1,080 hp from a 113kWh battery.
Image: Lucid Motors
Sure, the Audi E-Tron GT, Tesla Model S or Porsche Taycan will appeal to those who appreciate a tech-focused performance EV from an established name, but none can compete with the futuristic beauty of the Lucid Air. Designed by Derek Jenkins, formerly of Mazda, Volkswagen USA and Audi USA, the design language of the Air isn’t restrained by a family heritage or recognisable face that must be continued; it is fresh, premium and futuristic.
Lucid claims the most aerodynamic sedan on the market, with a drag coefficient of 0.22cd. The Air features a 34 inch 5k display cluster, up to 895kW (1,080hp) of.power in the Dream Edition, and Lucid DreamDrive, the company's autonomous driving system that utilises LiDAR, radar, ultrasonic sensors and multiple cameras.
Lucid signed a battery deal with Samsung in 2016, and in 2018 received $1 billion in funding for its new Californian factory from a Saudi Arabian investment fund, and is expected to begin deliveries of its Air Dream Edition mid-2021.
Rivian/Amazon Delivery Van
Amazon’s custom delivery van, developed and built by Rivian.
Image: Rivian
The only commercial vehicle on this list, and it takes top spot? Let us explain. The COVID-19 pandemic has changed the way we live and work, and its likely the majority of workers in the service sector/office environments will at least have the option to work from home even with the rollout of COVID-19 vaccines. With massive demand on postal and delivery services as consumers favour online shopping, It will be critical to minimise diesel particulates and emissions in our communities, and for transport companies to reduce fuel and maintenance costs. Amazon has already ordered 100,000 vans, in a bid to significantly reduce their carbon footprint by 2030.
Although specification details are limited at this stage, it’s expected that production of the bespoke delivery van will begin in late-2021 at Rivian’s Normal, Illinois factory. Reports in the press suggest the van may be based on a version of the ‘skateboard’ electric platform from the R1S/R1T, with a stretched wheelbase. Amazon has reported that the vehicle will feature Alexa voice control to assist drivers, as well AI controlled delivery routes to optimise efficiency and speed. While there are other exciting commercial EVs coming to market from companies like Arrival, Morris Commercial, Volvo and Daimler Trucks, Rivian’s promise is seen in the vote of confidence from Amazon, and the seed funding the company has received.
