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CASA GRANDE — Electric vehicle maker Lucid Motors Inc. is in talks to go public through a merger valued at $15 billion, Bloomberg News reported Monday.

According to the business news service, the merger would be with one of Michael Klein’s special purpose acquisition companies, according to people familiar with the matter. Bloomberg did not identify its sources. Representatives for Lucid Motors and Klein declined to comment.

The transaction could be valued at up to $15 billion, sources said, asking not to be identified because the matter is private. Lucid, which is backed by Saudi Arabia’s sovereign wealth fund, is working with financial advisers, the people added. The talks are ongoing but could still fall apart.

A former Citigroup Inc. rainmaker, Bloomberg reported that Klein has two SPACs that are on the hunt for deals. Churchill Capital Corp IV — the largest one, having raised more than $2 billion last year — is the vehicle considering a deal with Lucid, Bloomberg reported its sources said.

A special purpose acquisition company is one with no commercial operations that is formed strictly to raise capital through an initial public offering for the purpose of acquiring an existing company. Also known as “blank check companies,” SPACs have been around for decades.

According to Investopedia, SPACs have become more popular in recent years, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019. In 2020, as of the beginning of August, more than 50 SPACs have been formed in the U.S. and have raised some $21.5 billion.

Klein has played a prominent role in guiding the kingdom’s investments, serving as an adviser to its Public Investment Fund. Among other deals, he advised on the Saudi Aramco initial public offering.

Lucid has completed construction of its manufacturing plant in Casa Grande and is expected to produce vehicles for the market in the first quarter of the year. The plant is expected to create 2,000 new jobs and $6.2 million in new taxes for the city. The company plans to manufacture about 130,000 vehicles a year.

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