Today, shares of Churchill Capital IV (NYSE:CCIV) are on the move in a big way. Shareholders in CCIV stock are seeing gains of more than 12% at the time of writing as investors price in speculation.
What’s all the speculation about?
Well, an interesting report published last Friday from Wccftech highlighted a key development in the persistent rumors that Lucid Motors is in partnership talks with Apple (NASDAQ:AAPL). This rumor has intrigued the market, for obvious reasons. Both companies target the high-end consumer, with attractive products and marketing. And there’s been a ton of chatter on social media about the ties between the two companies in terms of former Apple talent now on Lucid’s board.
Let’s dive into the meat of this report, and why the market is giving credence to these rumors today.
Could an Apple-Lucid Deal Drive CCIV Stock Even Higher?
According to this report, the real driver of today’s rally comes from an interview Lucid Motors CEO Peter Rawlinson did with The Guardian. In this interview, Mr. Rawlinson didn’t outright deny Lucid was in talks with Apple.
Indeed, a “no comment” answer is generally appropriate in many sensitive situations. Thus, reading into such an answer is typically not an endeavor worth undertaking.
However, Wccftech points out that New York Stock Exchange rules stipulate that “a false rumor must be promptly denied.” Accordingly, the market appears to be taking the lack of an outright denial as a “yes,” and reflecting these rumored talks in Lucid’s stock price today.
I think it’s important for investors to keep these sorts of rumors in context. Even if talks are ongoing, Apple’s previous discussions with other car makers haven’t panned out as expected. Thus, today’s price action could indeed turn out to be a short-term move that could be reversed if rumors die down.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.