You may be curious about CCIV stock, a special purpose acquisition company affiliated with Lucid Motors. The company has a $40 billion market cap following the recent merger. After all, it has been up almost 6% on Wednesday! Here is an explanation of this stock’s characteristics. Here is what makes it an attractive investment. This article outlines some of the key aspects you should consider before you invest in CCIV stock.
CCIV stock is a special purpose acquisition company
CCIV stock closed down 8% on Tuesday following the announcement of the company’s acquisition of Lucid Motors. The two companies have been in talks for months, but now a new filing from the Securities and Exchange Commission sheds some light on their potential merger. CCIV stock has already declined on Thursday, but the LCID stock price is set to open up Friday at $19.20. The new name will be Lucid Group, and CCIV stock will trade under LCID. This merger will delist CCIV stock from the New York Stock Exchange and relist LCIV stock on the Nasdaq.
Lucid had already discussed its proposed acquisition with five other SPACs before approaching Churchill. They had unrealistic expectations, and Churchill was only willing to offer $11 billion. Lucid was prepared to take between $9 and $11 billion, but had been hoping for as much as $20 billion. That would make the current CCIV stock price roughly $36 billion. However, there are many reasons for this price drop.
It is affiliated with Lucid Motors
After receiving a $1 billion investment from the Public Investment Fund of Saudi Arabia, Lucid Motors started testing the final elements of the Lucid Air, an electric four-door executive car with a range of about 500 miles. Lucid Motors has plans to introduce the car for commercial sale later this year. On Dec. 8, Lucid Motors announced a merger with SPAC Churchill Capital Corp IV, or cciv stock. Shares spiked to around $60 a share, but have since fallen back to their pre-announcement levels.
Investors are cautiously optimistic on the merger, with Lucid’s CEO Peter Rawlinson continuing to lead the company. Meanwhile, Churchill Capital will lend the company its connections and insight into the automotive industry. Although shares of cciv stock are still affiliated with Lucid Motors, they are seeing reasonable trading volume today. Lucid’s stock is currently up 1.7% Friday. Since the start of the year, it has gained over 130 percent.
It has a $40 billion market cap post merger
While CCIV stock has dropped 50% after the announced merger with Lucid Motors, the company is still a great buy. The company expects to generate revenues of $97 million in 2020, $2 billion in 2022, and $14 billion in 2025. Furthermore, if the merger goes through, the share price will go up. After all, a drastic increase in shares will boost the market cap of the company to $40 billion. At this point, the stock is still trading around $25-$26.
Lucid Motors shares have been volatile, but they have been trading around the $10 mark since September 2020. In February 2021, the stock reached a high of $64 per share. Since then, it has shown a lot of volatility, settling at around $23 today. Still, this is a great price for investors who want to be part of the next EV boom. This stock is in an EV renaissance, so it could have a bright future.
It is up almost 6% on Wednesday
Churchill Capital Corp IV (CCIV) stock is slated to open higher on Wednesday. The company has gained almost 6% in pre-market trading today after closing nearly seven percent higher on Monday. The stock has gone up dramatically in recent months, but is still down nearly 50% from its 52-week highs reached last month. A recent acquisition by Lucid Motors has also spurred the stock’s rise.
The company has a great chance to disrupt Tesla’s stranglehold on the electric vehicle market. Lucid has a manufacturing plant in Arizona that is almost ready for production. The Wall Street Journal reports that Churchill Capital has been investing in the company since January. CIV shares are up nearly 6% on Wednesday, indicating that investors are beginning to realize the company’s potential. Nevertheless, investors must tread cautiously.
It is a good buy
CCIV stock is a great buy for several reasons. First, it has a good valuation, which means it’s a bargain when compared to other electric vehicle companies. Second, it has an attractive growth outlook, which means you should get in on this stock now. It projects revenues of $97 million in 2021, $2.2 billion in 2022, and $14 billion in 25 years. And finally, it’s a good buy because Lucid is expected to benefit from the EV policies enacted by the Biden administration. EV technology is advancing rapidly and battery costs will decrease significantly, and the company’s stock will likely follow suit. As electric vehicles become more commonplace, CCIV is sure to benefit.
As a new entrant to the market, CCIV stock may have a low price. However, if you’re a new trader, you might consider bonuses or free stocks. Then, open a real account. Deposit your trading funds by credit card, bank transfer, or cryptocurrency. Next, you can start buying CCIV shares. This is an excellent investment opportunity, even if you have a limited budget.