Ahead of the highly anticipated merger with Lucid Motors, investors in Churchill Capital (NYSE:CCIV) and CCIV stock have started to see some positive momentum. Indeed, CCIV stock closed higher by nearly 10% on heavy volume today.
These recent moves come amid a resurgence in the growth stock market. Investors appear to be willing to risk more capital in the markets today than ever before. And amid this risk-on sentiment, SPACs and de-SPAC companies are once again finding momentum.
That said, Churchill Capital is a company with its own set of catalysts right now. Let’s dive into five of the key factors driving CCIV shares higher today.
CCIV Stock Higher on Key Catalysts
Perhaps the key catalyst driving shares of CCIV stock higher today is preorder data. The company reported recently that it has just reached a new milestone with respect to preorders. In fact, the company boasts having 10,000 preorders for its flagship Lucid Air vehicle. These preorders are “bona fide reservations with appropriate deposits.” Indeed, Lucid is being careful to specify this, given the preorder fiascos we’ve seen with other EV players.
Additionally, in the company’s press release, Lucid’s CEO Peter Rawlinson made some interesting comments. He said the following, of the prospective “two-horse race” between Tesla (NASDAQ:TSLA) and Lucid, “Ultimately, it’s the technology that’s going to win, and what’s missing here is the recognition that this is a technology race. And right now, there is one runner in that tech race, and it’s Tesla. That’s why Tesla commands that market cap. That’s why it’s in that preeminent position. We have world-class technology, and we aim to make this a two-horse race.”
On top of this press release, Evercore ISI came out “impressed” by Lucid’s product line following a test drive of the Grand Touring Edition Air. Indeed, Evercore appears to be more bullish than ever on Lucid’s products, after assessing its product line as well as its preorder increase and its potential commercialization ramp.
These comments were compounded by a walkthrough of Lucid’s flagship New York Studio, which Evercore noted similar enthusiasm for.
Finally, the company’s upcoming merger vote is increasingly being seen as a buy-the-news event. Should shareholders vote as investors expect, Churchill could see additional buying pressure over the near term.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
