- Churchill Capital and Lucid Motors merger has finally gone through.
- CCIV shares suffer a steep fall on Tuesday as PIPE announced.
- Lucid CEO outlines plans for the future of Lucid Motors.
CCIV Stock Forecast
So the long-awaited merger of 2021 so far is on. Churchill Capital IV (CCIV) the SPAC that grabbed headlines this year has done the deal to take Lucid Motors public. Investors had piled into CCIV shares pushing them above $60 as investors saw Lucid as the next Tesla and the chance to get in early. And given Tesla's impressive appreciation over the last years who could blame them.
Private investors have become increasingly frustrated with Wall Street in 2020/21 and have engaged in several companies in an apparent frustration with what is seen as an us versus them climate. Certainly, individual investors have a hard time getting involved in IPO deals and the appreciation of several IPO's immediately after launch has frustrated many retail investors.
As a result, money has flooded into SPAC (Special Purpose Acquisition Companies) who allow investors to get into companies pre IPO and hopefully avoid paying the post IPO premium. The Churchill Capital IV SPAC back by Michael Klein was seen as the perfect way to get into Lucid Motors and get a piece of a potential Tesla rival.
So now that the deal is done how will the future for Lucid shareholders work out? Well given Lucid CEO Peter Rawlinson is a former Tesla engineer who knows his product investors are backing him strongly. Lucid has ambitious plans to compete with Tesla and if it achieves those plans it should indeed be rewarding to shareholders. Lucid is now well funded and able to advance with its plans.
The Electric Vehicle (EV) has over the course of 2020 and 2021 moved into mainstream automotive thinking and is clearly the future. Legacy manufactures, who once perhaps paid too little attention to the EV sector are now struggling to catch up. In this respect, Tesla has had a comfortable lead and built an enviable brand.
Now Lucid enters the fray as a well-funded, well-backed rival with ambitious growth plans.
See also CCIV Lucid CEO speaks to Reuters
Latest news about Churchill Capital
Shares in Churchill Capital closed at $35.21 on Tuesday a loss of nearly 40%. Most likely the PIPE transaction weighed on the stock as the deal was confirmed. Lucid CEO Peter Rawlinson said "had planned a $1billion PIPE at $10 per share for SPAC merger but upsized to $2.5 billion at $15 per share due to strong investor demand", Reuters reported. Rawlinson also spoke to Reuters and investors on Tuesday and outlined ambitious growth plans. Noting the Lucid Air Dream edition is "virtually sold out".
The next step is the production of a less expensive, sub $70,000 version of Lucid Air in 2022 Reuters reports.
Peter Rawlinson also spoke of Lucid's rival in the EV sector Tesla. Rawlinson said the company is ahead of Tesla in technology. Rawlinson also told Reuters that Lucid plans to launch a rival to Tesla's Model 3 in 2024 or 2025, that it was too early to make their own battery cells for now saying that Lucid had contracts with LG Chem and Samsung SDI. Rawlinson also told Reuters six automakers had expressed interest in Lucid's technology and in potential cooperation.
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