Another day, another special purpose acquisition company soaking up time in the spotlight. This time it is Churchill Capital (NYSE:CCIV), and the acquisition target is Lucid Motors. So what do investors need to know as CCIV stock soars? And what makes a Lucid Motors SPAC merger so appealing?
To start, investors should know that Lucid Motors is an electric vehicle play with a luxury focus. Churchill Capital is a blank-check company under the leadership of Michael Klein.
With that in mind, here is what you should know about CCIV stock and the Lucid Motors SPAC merger:
- Churchill Capital IV, the blank-check company in question, is the fourth such SPAC from Klein.
- For unfamiliar investors, Klein is a well-known dealmaker and former Citigroup (NYSE:C) executive.
- CCIV stock first came public in July 2020.
- At the time, it raised $1.8 billion by offering 180 million units at $10 each.
- Additionally, CCIV stock did not have a specific acquisition focus. Instead, Klein said the blank-check company would look for long-term growth prospects and attractive competitive dynamics.
- Investors should know that previous Churchill SPACs are responsible for bringing MultiPlan (NYSE:MLPN) and Clarivate (NYSE:CCC) public.
- At one point, the blank-check company was working to acquire a stake in DirecTV. However, it appears those talks have stalled out.
- With all of this in mind, Bloomberg reported today that Lucid Motors is in talks to come public via CCIV.
- Importantly, such a deal could be worth as much as $15 billion.
- Lucid Motors focuses on the luxury segment of the passenger EV market.
- CEO Peter Rawlinson was previously responsible for developing the Model S with Tesla (NASDAQ:TSLA).
- Lucid plans to begin deliveries of an electric sedan during Q2.
- Investors should also note that a Saudi Arabian wealth fund is a large Lucid Motors backer.
CCIV Stock and the Lucid Motors SPAC Merger
So what should you make of CCIV stock and the potential Lucid Motors SPAC merger? From a quick glance at the stock market, it appears many investors are thrilled. Following the Bloomberg report, CCIV shares are up more than 30% with just minutes left in the trading day.
Importantly, Lucid Motors is far from the first electric vehicle maker to come public via a reverse merger. Nikola (NASDAQ:NKLA) and Fisker (NYSE:FSR) led the way earlier in 2020. Now, a handful of deals are still in the works, including United Kingdom startup Arrival. However, Lucid stands out from the crowd in more ways than one.
Right now, Lucid has quite a bit of institutional backing. It is also farther along in the vehicle development process. Unlike Nikola and Fisker that came public with design plans and a few promised vehicles, Lucid is already preparing to start deliveries. This means EV bulls can see CCIV stock as a potentially less risky way to dive into new offerings. Investors should note that the all-electric Air EV will retail for $69,000 and can do 500 miles on a single charge. More accessible versions of the Air and an electric SUV will start working their way through the pipeline in 2022.
Keep CCIV stock and the potential Lucid Motors SPAC merger on your radar. Confirmation of the deal could send CCIV stock soaring once more.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.