- Shares in Churchill open higher by 4% on Friday.
- Churchill Capital IV remains the subject of an anticipated merger with Lucid Motors.
- Investors growing increasingly optimistic about the Lucid Motors merger.
Update, February 19: Shares in CCIV continued to be bulled up by traders on Friday. CCIV shares opened up 4% above $60 on Friday. No new news has come to light yet about the Churchill Capital Lucid Motors merger but traders are backing the confirmation being imminent. CCIV shares are now up sixfold from their IPO booking nice returns for the many retail investors.
Update: Shares in Churchill Capital continue to surge on Thursday, breaking through $60 for the first time. No new news just continued anticipation in relation to a merger with Lucid motors.
Shares in Churchill Capital IV remained strong yesterday as investors continued to back the highly anticipated merger with Lucid Motors. CCIV shares have been strong for all of 2021 and have been the retail stock of choice for the last number of weeks. CCIV has been one of the most trending stocks on Twitter for the last two weeks. CCIV shares are currently at $57.50 up 2% in Thursday premarket trading.
CCIV Stock Forecast
So what next. Well, the probability of a merger is strongly priced in with shares up nearly fivefold from the $10 launch. A report from Reuters has driven the latest gains with the deal now looking imminent. It is unclear if a wall crossing exercise has begun or not in relation to the PIPE transaction. A PIPE is a Private Investment in Public Equity, basically a discounted share placing to raise capital. Reuters reports that the PIPE for CCIV Lucid merger could be up to $1.5 billion. A Wallcrossing is where potential subscribers to the PIPE are asked in advance if they have an interest in Churchill, but no specifics are given as to the nature of the transaction. Once they are wall crossed they are effectively an insider and are prevented from any discussions under insider trading rules.
In this case, the PIPE is likely at $10 so obviously, demand will be huge given the share price north of $50. This may stop any pre-hedging short selling as investors will likely be heavily scaled back in their allocations as demand outstrips supply.
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Churchill Capital Corp IV News
So a quick recap. Churchill Capital IV was set up by Michael Klein a former Citigroup dealmaker. Once rumoured to be next in line for the CEO job at Citi, Klein set up his own investment and advisory firm. He is incredibly well connected having worked on some of the largest mergers in history. He worked with Lucid Motors CEO Peter Rawlinson hen Rawlinson was CEO of Dow Chemical on the DuPont Dow merger. Klein has also advised the Saudi sovereign wealth fund Public Investment Fund (PIF) on its global investment strategy. The PIF is Lucid Motors major backer having a stake reportedly near 60% in Lucid.
Tesla (TSLA) cuts prices
Once or if the merger between Churchill Capital and Lucid Motors goes through the next step is to value Lucid Motors. Whether due to competition concerns over Lucid's impending launch or general competitve pressure from mainstream auto manufactures entering the EV space, Tesla has announced Price cuts to the entry level version of its Model 3 and Model Y models. Tesla has increased the price of the more high performance models.
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