Churchill Capital IV (NYSE:CCIV) and electric vehicle maker Lucid Motors remain in the SPAC spotlight on Tuesday, even as merger delays weigh down CCIV stock. In fact, although CCIV shares are down for the day, a potential ray of hope comes from one CNBC interview. So what do you need to know about a potential Lucid Motors SPAC merger now? And what is the latest CCIV news?
To start, investors should make sure they are familiar with the story. Bloomberg reported earlier in January that Lucid Motors was in talks to come public through Churchill Capital, a blank-check company from Michael Klein. CCIV stock has been on a tear since then, although Churchill and Lucid Motors executives have not confirmed the deal. However, yesterday brought a halt to the rally. That is because a new report suggests a Lucid merger may face delays.
Why? It turns out that Lucid Motors may be in talks with the Public Investment Fund of Saudi Arabia (PIF). PIF holds a 67% stake in Lucid Motors thanks to a $1.3 billion investment it made back in 2019. As a result, this report could be quite consequential for CCIV stock. Writing for Wccftech, Rohail Saleem said that Lucid Motors is in negotiations to build a second production plant in the city of Jeddah.
This news comes as the company preps to deliver its flagship Air EV later this year. Although it has a factory in Arizona, it hopes to scale production to 400,000 vehicles a year. As Saleem concludes, such a production facility could help Lucid Motors reach those production goals.
Investors understandably panicked about a potential delay, especially after sending CCIV stock to the moon. However, an interview today has some bulls feeling quite confident. Here is what you need to know now…
CCIV Stock and the Saudi PIF
Today, Public Investment Fund Governor Yasir Al-Rumayyan went on CNBC to share how the PIF will reach $1 trillion in assets under management by 2025. As part of the interview, he touched on different investment strategies, including PIF investments in the U.S. and other countries. Host David Faber asked the big question — where do things stand with Lucid Motors?
Before you get your hopes up, know that Al-Rumayyan did not give a conclusive answer. However, he said that at this point, it is time for Lucid Motors to consider the next steps. This means either finding a private placement or coming public via IPO or SPAC. He also said that the Lucid Motors board is currently discussing the best options to take those next steps, and he believes the board should have a conclusion soon.
His answer has many investors hopeful that Lucid Motors and Churchill Capital are just waiting for the right time to announce the deal. Why? Well, Al-Rumayyan did not share bad news, and at this point, that is all CCIV stock bulls are looking for. Plus, if the Lucid board truly does have news soon, CCIV stock could be headed for another upswing.
What should you do here? Consider the advice of InvestorPlace analyst Luke Lango. He wrote last week that investors should absolutely buy into Lucid Motors. However, he cautions that CCIV stock looks risky on nothing but rumors. Wait for more information, do your own research and get ready to dive in. Hopefully Al-Rumayyan is right and investors will get answers sooner rather than later.
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.
