Since its merger with Churchill Capital Corp IV on July 23, Lucid Motors (NASDAQ:LCID) stock has garnered considerable attention. Innovation within the sector has helped raise the profile of electronic vehicle manufacturers and increased public fascination with the progress being made.
These trends, however, have not yielded such positive results for investors. As of this writing, the stock has declined 2.47% on the day. This is in keeping with a recent trend, as LCID stock has fallen by 9.85% over the past five days.
September, however, marks two important deadlines for the company and its investors. Up until this point, company insiders have been blocked from selling shares due to a lock-up provision. These initiatives are common for SPAC mergers, particularly when dealing with early stage companies. As the company stated in the merger announcement,
“All proceeds will be used as growth capital for the company to execute on its strategic and operational initiatives.”
As of Sept. 1, though, this restriction will lift and with the recent patterns of decline, pressure to sell will be strong for those who hold LCID stock. However, this provision only applies to PIPE (private investment in public equity) investors. Other stakeholders face much longer deadlines, typically six or 18 months after receiving their shares, which means waiting until at least the end of 2021.
A Second September Catalyst Looms for LCID Stock
Another important event is coming later in the month. Lucid’s advancements in the area of electronic luxury vehicles have sparked considerable interest in the company. Now, its factory is about to open its doors. Sept. 27 will kick off Production Preview Week at AMP-1, its manufacturing plant, in which guests from media, financial and policy circles will be able to not only to view the company’s manufacturing facilities in Casa Grande, Arizona, but to experience new products firsthand through riding and driving. Guests will also have the opportunity to speak directly with company executives and the engineers behind the technological advancements. These events will last for a calendar week.
While Lucid has not released a manufacturing timeline, these previews will do much to generating extensive coverage of Lucid’s products in development and highlight what the future of transportation could look like. Once they have seen what is behind the factory walls, experts will be able to weigh in and provide context on what these developments will mean for the company, as well as for investors and consumers. With this in mind, investors who are able to sell their LCID stock may want to consider waiting until the end of the month.
The Bottom Line on Lucid Motors
Investors seem keen to sell as soon as they are able, but it could be worth waiting to see what the events of the week of Sept. 27 mean for both the company and for LCID stock.
On the date of publication, Samuel O’Brient 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.
