Churchill Capital IV (NYSE:CCIV) is racing higher on Friday, even after triggering a circuit breaker earlier this morning. In fact, after trading resumed, shares are once again up 9%. So what do you need to know about CCIV stock? And how does a Lucid Motors SPAC merger play in?
To start, investors have been chasing up CCIV stock on a lot of speculation. That is because Bloomberg reported earlier this week that electric vehicle maker Lucid Motors was in talks to come public with Churchill Capital. The news has been incredibly influential, especially as Lucid Motors represents a real opportunity in EVs. It plans to start delivering its Air EV in the second quarter, and with a former Tesla (NASDAQ:TSLA) engineer at its helm, many see it as a possible Tesla killer.
However, Churchill Capital leader Michael Klein and Lucid Motors have not confirmed a deal. At an IPO Edge event earlier this week, Klein acknowledged the rumors but said he could not share anything at the time. Even with those cautionary words, investors are determined.
But still, what caused the trading halt today? And why is CCIV stock on fire this afternoon?
CCIV Stock Speculation
Once again, rumors are swirling. One social media user posted earlier this morning that his inside sources at Lucid Motors tipped him off to a company-wide meeting. As he shared that, he added that such a meeting was specifically for big news. Putting two and two together, many assumed the big meeting would allow company executives to announce a SPAC merger. Although it is certainly exciting, investors should know that there is no official confirmation of the meeting. And more importantly, there is still no confirmation of the Lucid Motors SPAC merger.
For investors then, proceed with caution. That is not to say a Lucid Motors SPAC merger is out of the question — and if it does come to fruition, it would be a big deal for CCIV stock. As you do your own research, you can check out our 13 top facts to know about a potential deal.
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.