Lucid Motors on Monday agreed to go public by merging with Churchill Capital IV Corp, a blank-check agency backed by Wall Avenue dealmaker and former Citigroup banker Michael Klein, in a deal that valued the mixed firm at $11.75 billion.

The take care of Churchill Capital IV Corp features a non-public funding of $2.5 billion from Saudi Arabia’s Public Funding Fund, funds managed by BlackRock and others. It’s anticipated to offer Lucid with $4.6 billion in proceeds.

The California-based EV maker had stated in August that it goals to begin promoting its first luxurious mannequin, Lucid Air, early this 12 months. The electrical sedan can be the primary to realize a 500-mile driving vary, the corporate stated. (

Lucid Air has a beginning value of $77,400. However it will come all the way down to $69,900 as clients could also be eligible for a federal tax credit score of $7,500.

After the posh electrical sedan was priced, Tesla Chief Government Elon Musk had in October final 12 months introduced a minimize within the value of Mannequin S Sedan. He tweeted, “The gauntlet has been thrown down!”

It was final 12 months that different EV makers corresponding to Nikola Corp and Fisker Inc went public by way of mergers with blank-check companies. Los Angeles-based EV agency Faraday Future Inc additionally introduced a take care of a blank-check firm to go public earlier this 12 months.

Based in 2007 by former Tesla Inc government Bernard Tse and entrepreneur Sam Weng as Atieva Inc, Lucid had acquired preliminary funding from Chinese language expertise firm LeEco, which is managed by Faraday Future founder Jia Yueting.

Churchill capital Corp IV, the fourth particular objective acquisition firm (SPAC) backed by former Citigroup Inc banker Michael Klein, went public in a $1.8 billion preliminary public providing (IPO) in July final 12 months.

SPACs are shell corporations which increase cash by way of an IPO to take one other firm public inside two years.

Such mergers have change into a preferred alternate options for corporations seeking to go public, with over 200 SPAC offers collectively elevating greater than $70 billion in fairness final 12 months.