Churchill Capital IV (NYSE:CCIV) remains volatile, down 5.5% in trading today. Here are three big Lucid Motors stories to keep an eye on for CCIV stock.
There’s good news and bad news for CCIV stock, but there’s also some pretty exciting news about the future for Lucid Motors.
First, the good news: Lucid Motors has sold out of reservations for its $170,000 sedan. Those 500 preorders represent roughly $84.5 million in future revenue for the company, and bring the company’s total reservations to more than 8,000. The additional 7,500-plus preorders are for models ranging in cost from $70,000 to $130,000.
Now, the bad news: Lucid Motors and competitor Rivian are the targets of a lawsuit filed by Illinois car dealerships, who take issue with these companies’ direct-to-consumer (DTC) business model. Sector juggernaut Tesla (NASDAQ:TSLA) has also previously come under fire from auto dealers for the same.
While it’s hard to imagine that DTC auto sales will be outlawed, state-by-state patchwork legality mean consumers in some states can’t make a purchase this way. And that’s especially stressful for Rivian and Lucid, which have plans to open showrooms and service facilities in the state.
However, there’s one last piece of news that should be particularly exciting for CCIV stock bulls. Lucid Motors just revealed plans for a $25,000 electric vehicle, giving the company a new entry point into the market and dramatically widening its potential customer base.
CEO Peter Rawlinson said the company model is to “start with a high-end product and gradually make it more affordable.” Looking back to Lucid Motors’ preorder numbers, the estimated average sale price was $87,000, suggesting the company was more popular at lower price ranges.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.