Luxury electric vehicle maker Lucid Motors has agreed to merge with Churchill Capital IV Corp (CCIV), in a deal which gives the new organisation a valuation of $24 billion, the largest reverse merger to date.

The deal will include $2.5 billion of funding from Saudi Arabia’s public investment fund, BlackRock, Fidelity and other sources.

Lucid Motors was founded as Atieva in 2007, has around 2,000 employees, and is currently run by ex-Tesla Engineer Peter Rawlinson.

CCIV, which raised $1.8 billion in July, is the fourth special purpose acquisition company (SPAC) backed by well-known dealmaker and former Citigroup banker Michael Klein.

The SPAC’s shares fell by over a quarter in trading after the news was revealed.

Lucid has claimed it is on track to start production and deliveries of its first luxury sedan, Lucid Air, in North America in the second half of 2021, priced at $169,000.

The luxury vehicle maker plans to produce 20,000 vehicles in 2022 and 251,000 in 2026, with production based out of a factory in Arizona.

Michael Klein, lead investor, said: “Lucid's superior and proven technology backed by clear demand for a sustainable EV make Lucid a highly attractive investment for Churchill Capital Corp IV shareholders, many of whom have an increased focus on sustainability”.

Elon Musk, Tesla chief executive, said on Twitter about the Sedan’s pricing: “The gauntlet has been thrown down!”.

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