Why SPAC Churchill Capital IV Share Is Higher Today
What happened
Actions of Churchill Capital IV (NYSE: CCIV.U) Friday, amid rumors that the Special Purpose Acquisition Company (SPAC) was set to announce a merger deal with electric vehicle maker Lucid Motors.
As of 1:15 p.m. EST, Churchill shares were up about 8% from Thursday’s closing price. They had increased by 21% – and at one point, over 6% – earlier in the session.
So what
Churchill Capital IV drew intense interest from Bloomberg reported Monday that he could be close to a merger with Lucid. The interest isn’t hard to fathom: EV stocks have made huge gains over the past year, and – unlike some of the companies that went public around this time – Lucid is on the verge of it. to ship its first air luxury sedan.
Lucid’s Air electric luxury sedan, a direct rival to the Tesla Model S, starts at $ 80,000. Deliveries will begin this spring. Image source: Lucid Motors.
In fact, it will be a bit surprising if Lucid accepts a deal with Churchill – or any other PSPC, for that matter. The company raised $ 1 billion from Saudi Arabia’s sovereign wealth fund in September 2018, using that money to build a plant in Arizona and to complete Air development.
Why are investors so enthusiastic? Because Lucid has a solid order book for the Air and a second model (a luxury SUV) in the pipeline, and he expects start shipping Air this spring.
Now what
It is possible that the deal will be announced very soon – perhaps as early as Friday afternoon. If applicable, auto investors Should listen carefully to CEO Peter Rawlinson’s reasoning in closing the deal before jumping in – but that said, Lucid’s track record to date inspires some confidence.
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