<p><img src="https://static1.businessinsider.com/image/6033b9cbbed5c50011a2bc6a-1892/Lucid studios_1.jpg" border="0" alt="Lucid studios_1" data-mce-source="Lucid" data-mce-caption="Lucid Air."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Shares of <a href="https://markets.businessinsider.com/stocks/cciv-stock">Churchill Capital Corp. IV</a> spiked 19% on Monday after a <a href="https://www.bloomberg.com/news/articles/2021-02-20/lucid-motors-is-said-to-near-deal-to-go-public-via-klein-s-spac">Bloomberg report</a> said a merger with the electric vehicle-maker Lucid Motors could come as soon as Tuesday.</p><p>Rumors about a potential merger between the so-called blank-check special purpose acquisition company (SPAC) Churchill Capital IV and Lucid have been in the works for <a href="https://markets.businessinsider.com/news/stocks/churchill-capital-corp-iv-stock-extends-surge-lucid-motors-spac-2021-1-1029960408">over a month now</a>.</p><p>If the deal goes through, it will use $2 billion in cash raised by Churchill Capital IV's IPO, as well as an investment of between $1 billion and $1.5 billion from institutional investors to support the transaction.</p><p>When the merger is complete the combined entity will be valued at roughly $15 billion, according to unnamed sources at Bloomberg.</p><p>Churchill Capital IV's stock has skyrocketed more than 425% since reports first came out of talks between the Michael Klein-backed SPAC and Lucid Motors last month.</p><p>Investors are excited about the prospects of Newark-based Lucid Motors. Lucid is a real competitor to Tesla, and its new all-electric vehicle, the Lucid Air has been <a href="https://www.motortrend.com/cars/lucid/air/2021/2021-lucid-air-first-look-review-photos-video/">praised by critics</a>.</p><p>The company's flagship model, the <a href="https://lucidmotors.com/air/dream-edition/">Air Dream Edition,</a> is set to launch in the second half of 2021 and boasts a Tesla-like performance with a new focus on luxury.</p><p>Lucid is backed by Saudi Arabia's sovereign wealth fund, also known as the Public Investment Fund or PIF, which acquired a 67% stake in the EV maker for about $1.3 billion in 2018.</p><p>Bloomberg reported earlier this month that Lucid was in talks to build an EV manufacturing facility near the Red Sea city of Jeddah as a result of its Saudi Arabian backing.</p><p>The company also completed its <a href="https://www.businessinsider.com/lucid-motors-completes-arizona-factory-2020-12#:~:text=Lucid%20Motors%20announced%20Tuesday%20that,capacity%20to%20400%2C000%20units%20annually.">first factory in Casa Grande, Arizona</a> in December, where it expects to eventually produce 400,000 cars annually.</p><p>If the Lucid merger with Churchill Capital Corp IV does go through, it will continue a year of <a href="https://www.businessinsider.com/spac-boom-record-year-blank-check-company-kaepernick-ackman-2021-2">monumental growth for SPACs</a>. SPACs have overshadowed traditional IPOs in 2021, accounting for 63% of the nearly $77 billion raised on U.S. exchanges, according to data from Bloomberg.</p><p>Even Churchill Capital Corp IV is just one of seven SPACs backed by former Citigroup man Michael Klein. Just last week Klein <a href="https://www.benzinga.com/news/21/02/19664970/michael-klein-raises-1-6b-with-6th-and-7th-spacs-cciv-continues-to-rise">raised $1.6 billion</a> for his sixth and seventh SPACs.</p><p>Churchill Capital Corp IV traded up 17%, at $62.03, at 9:38 a.m. ET in New York.</p><p><img src="https://static1.businessinsider.com/image/6033c59838aa9f00185e02be-837/Screen Shot 2021-02-22 at 85355 AM.png" border="0" alt="Screen Shot 2021 02 22 at 8.53.55 AM" style="display: block; margin-left: auto; margin-right: auto;" data-mce-source="Markets Insider" data-link="https://markets.businessinsider.com/stocks/cciv-stock"></p><p><a href="https://markets.businessinsider.com/news/stocks/churchill-capital-corp-iv-stock-price-lucid-motors-electric-vehicle-2021-2-1030108234#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/candy-corn-ingredients-made-of-gelatin-lac-resin-halloween-sugar-syrup-2017-10">What candy corn is actually made of</a></p> Click here to read full news..