Automakers that have made deals with a SPAC, also known as a “blank check company,” include Faraday Future, Nikola Corp., and Fisker Inc. SPACs exist solely to raise capital through an IPO in order to merge with private companies, enabling those companies to acquire liquidity using the public market. It’s an alternative to a traditional IPO, and worth noting that they have a poor record of delivering returns. It’s akin to investors gambling with unproven businesses, but when one hooks up with the right company, the results can be spectacular.
Lucid is already backed by Saudi Arabia’s sovereign wealth fund and is working with financial advisors to try and work a deal with Klein’s Churchill Capital Corp IV.
