Investors are really not giving up with blank-check company Churchill Capital IV (NYSE:CCIV). There is still no confirmation of a Lucid Motors SPAC merger, but that is not stopping CCIV stock bulls. Shares are up another 3% today, leaving many to wonder what exactly is behind the rally.
For those unfamiliar, here is a quick recap. Bloomberg announced that electric vehicle maker Lucid Motors was in talks to come public through Churchill Capital, a blank-check company led by Michael Klein. Investors immediately celebrated, buying into CCIV stock. One of the perks in a potential deal is that Lucid is rather far along in its electric car plans. In fact, the company plans to begin deliveries of its Air EV later this year.
Klein refused to comment, and we have heard nothing from Lucid Motors executives either. Speculation over the deal has caused pops, including on the day of a company-wide Lucid Motors meeting. At the time, there was hope the automaker would announce the deal to its employees first. However, Klein has tried to temper expectations. Earlier this week he caused a drop in CCIV stock after declining to comment on the unusual trading activity. He also said that his SPAC is, as usual, considering a variety of acquisition targets.
The best news for bulls here would be true confirmation of the deal, and the requisite U.S. Securities and Exchange Commission filings that would follow. However, speculation and a new article from the Los Angeles Times has CCIV stock on the move once again.
Why CCIV Stock Is Moving
Earlier this morning, Russ Mitchell wrote for the Los Angeles Times that Lucid Motors is “set to go public.” In his article, he acknowledges that the EV maker has struggled financially. However, thanks to all of the hype around blank-check companies and backing from Saudi Arabia, Lucid Motors is now in a much better place.
Mitchell also takes the excitement up a notch. He wrote this morning that the deal is near completion, according to those familiar with the Lucid Motors SPAC merger negotiations. He also said that such a deal would bring Lucid Motors a “hefty” amount of cash, which should help it debut the Air and address the other all-electric models in its pipeline. From Mitchell:
“If the deal goes off without a hitch, Lucid executives and board members — including Chairman Andrew Liveris, a former Dow Chemical chief executive with deep financial ties to Saudi Arabia — would get a shot at a big payday.”
After Klein refused to comment on the deal, the article from Mitchell is a fresh beacon of hope. However, while exciting for fans of CCIV stock, there is still reason for caution. There is still no official confirmation, and no set timeline for such confirmation to come through. As Mitchell said, if the deal goes through, it will be great for executives. It would also give investors access to a potential Tesla (NASDAQ:TSLA) killer in the public markets. For now though, do your own research and evaluate how much pre-merger risk you want to take on.
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.