Shares of SPAC Churchill Capital IV (NYSE:CCIV) are once again on the move. Today’s 8% surge is a sharp reversal of pretty intense downside momentum for CCIV stock of late. Indeed, this rise in CCIV stock is nice; however, investors may note that this stock is still down approximately 60% from its highs in late-February.
That said, let’s look at what’s driving this SPAC name higher today.
Increased Visibility Driving CCIV Stock Higher
As with other high-flying SPAC options, volatility has been the norm for investors in CCIV stock. The company’s announcement it entered into an agreement to bring Lucid Motors public on Feb. 22 was met with initial optimism. However, in recent weeks, it appears investors have taken their foot off the gas.
One of the reasons for this could be a lack of visibility into what’s going on with the merger. Investors seem to be dissuaded by a lack of visibility with respect to a timeline for a merger, as well as key production details from Lucid.
That said, tweets today from Lucid Motor’s feed provide some additional insight into what the company’s working on. The company highlighted a number of features it’s excited about, and shared a test drive of the Air EV. From a product design standpoint, these vehicles look attractive. However, the question many investors have is: When will we be able to buy these cars?
The Bottom Line
It appears in the absence of meaningful news, the company is attempting to fill the void with marketing right now. Today’s surge could be a result of risk-on sentiment taking hold in growth stocks once again. Bond yields have given up some ground in recent days, which is good for CCIV stock and its EV peers.
Should investors gain a clearer picture of the timeline, this stock could really take off. However, for now, it’s a guessing game.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.