- NYSE:CCIV shares lost a further 1.88% on Monday as growth sectors took a back seat.
- Lucid Motors and CCIV continue to struggle with a realistic valuation once the merger is completed.
- Lucid’s rival Tesla is hosting its first ever AI Day to showcase its latest technology.
NYSE:CCIV fell for the third straight day on Monday as the stock once again seems to be making a habit of pulling back after climbing too high. Shares of CCIV declined by 1.88% to close the first trading day of the week at $22.96. The stock now looks to find support at its key 15-day moving average price of $21.25, but if that breaks down, we could see CCIV slide back down even lower towards its PIPE price of $15.00.
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One of the issues with CCIV’s stock price rising so high is that it is still a SPAC, meaning a shell company that is eventually going to merge with Lucid Motors. If the SPAC stock rises too high, it balloons the valuation of the merged company when they hit the public market. Valuation concerns are important because once actual revenue and sales numbers are reported, the stock could plummet if the company has not met Wall Street expectations. Currently, Lucid Motors would be coming public with a $35 billion valuation this year, with only about 500 vehicle deliveries in 2021.
CCIV stock news
Lucid’s chief rival Tesla (NASDAQ:TSLA) continues to move fast in anticipation of Lucid vehicles hitting the roads later this year. The electric vehicle industry leader announced its first ever AI Day event which will showcase some of Tesla’s upcoming technology, as well as double as a recruiting event to hire new talent into its organization. Lucid made headlines last week by releasing more details of its DreamDrive driver assistance platform, so Tesla’s much anticipated FSD or Full Self Driving technology should be highlighted at the AI Day event.
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