When traders first learned about the business combination between special purpose acquisition company (SPAC) Churchill Capital IV (NYSE:CCIV) and luxury electric vehicle maker Lucid Motors, enthusiasm ran high. However, the hype phase didn’t last long for CCIV stock.
The stock hasn’t quite gotten down to its pre-deal announcement price. Yet, the price drop has left some investors wondering whether they should abandon ship.
The final decision is yours, but I would recommend considering staying the course. If anything, the decline in CCIV stock may be an opportunity to pick up a few more shares at a good price.
And if you’re in need of some motivation, a sneak peek into Lucid Motors’ next-gen assembly factory ought to get you revved up.
A Closer Look at CCIV Stock
Before we delve into the details of Lucid’s manufacturing plant, let’s take a glance at the recent price history of CCIV stock.
At the beginning of 2021, the share price was barely above $10. That’s not unusual for a pre-deal announcement SPAC stock.
As we now know in hindsight, the stock price didn’t stay near $10. In January and early February, the share price shot up like a rocket.
On Feb. 18, the stock reached a 52-week high of $64.86. However, a precipitous decline was right around the corner.
Painfully, CCIV stock fell to a short-term low of $21 and change in March. Now the stock is less than $22.
With the stock mostly trading sideways for a couple of weeks, it’s possible that the worst might be over for Churchill Capital IV shareholders.
Plus, the reduced price might represent a chance to take a starter position or add to an already existing position.
Relax and Be Patient
The share-price retracement shouldn’t be considered a problem if you still believe in Lucid Motors as an electric vehicle maker with outstanding value.
The key here is to be patient. Yet, I fully understand that being patient through a stock-price decline is easier said than done.
Compounding the problem is the fact that Lucid vehicles aren’t on the streets yet. In other words, CCIV stock investors are wagering on the future of a company with products that aren’t even available to the public.
Still, the wait shouldn’t be too much longer. The company’s first car, known as the Lucid Air, is expected to be delivered to customers as soon as 2021’s second half.
Besides, the specs on the Lucid Air should impress electric vehicle aficionados:
- Projected range of over 500 miles
- Zero to 60 miles per hour in under 2.5 seconds
- California-inspired design
- Luxurious interior space
- Mid-size exterior footprint
So, just relax as the Lucid Air’s rollout will take place in due time.
A Peek at the Factory
If you need something to tide you over until the Lucid Air is finally delivered to customers, then check this out.
Just recently, Lucid Motors tweeted a video offering a sneak peek at the company’s AMP-1 assembly factory.
Even if you’re not a car aficionado, you should still be impressed by the look of Lucid’s state-of-the-art automotive factory.
Additionally, there’s a YouTube video offering a look inside the AMP-1 plant.
I understand that these types of videos are intended to make things look impressive. Nevertheless, you might be struck by how bright, clean and modern the AMP-1 factory looks.
Apparently, this is all part of Lucid’s philosophy of maintaining complete control over the manufacturing process.
That’s because manufacturing “is too critical an activity to entrust with a third party,” according to CEO Peter Rawlinson.
The Bottom Line
Is the decline in CCIV stock a problem? Not if you’re patient and you’re on board with Lucid Motors’ vision and ambition.
And if you need some inspiration while you’re waiting for the Lucid Air’s rollout, a glance at the AMP-1 plant ought to keep you motivated.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.