- NYSE:CCIV dropped by 0.56%, ending its recent run of positive trading sessions.
- Electric vehicle stocks pull back ahead of the inflationary report on Thursday.
- Competition is growing in the EV industry, with recent SPAC stocks painting a grim future for Lucid.
Update June 14: Churchill Capital Corp IV (NYSE: CCIV) is set to extend its downtrend on Monday, falling another 0.91% according to pre-market trading. That would be the fourth consecutive day of drops for the shares of the company about to merge with Lucid Motors. However, CCIV – later to have the LCID ticker – is up some 40% in the past month, climbing from the abyss under $20. The fall below $25 would be a blow to the bulls, but more significant support awaits at $23.56, which was a stepping stone on the way up in early June.
NYSE:CCIV has finally seen its recent resurgence come to an end as the broader markets pulled back on Wednesday. Shares of CCIV dipped by 0.56% to close the day at $26.49, as the red-hot SPAC stock took a mid-week breather. The stock has gained an impressive 17% over the past week as things have started to heat up in terms of merger rumors with Lucid Motors. Shares are still down nearly 245% from the all-time high price of $64.86, so there are definitely some investors who are interested in seeing the price of the stock significantly rise from current price levels.
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The electric vehicle sector in general pulled back on Wednesday, as growth sectors ended lower ahead of the CPI report on Thursday. Tesla (NASDAQ:TSLA) finished 0.80% lower, and Nio (NYSE:NIO) dipped by 1.88% on the day. XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), Ford (NYSE:F), and General Motors (NYSE:GM) also ended in the red, so CCIV’s dip is more likely attributed to industry performance rather than bearish news about the company.
CCIV stock news
The recent track records of EV companies going public via SPAC IPOs has not been great, although investors seem to be overlooking this with Lucid. Nikola (NASDAQ:NKLA), Canoo (NASDAQ:GOEV), and Lordstown Motors (NASDAQ:RIDE), have all performed poorly since their respective mergers completed. While Lucid does perform in a different segment of the market, it is interesting to note how many promising EV companies turned out to be underperformers.
Previous updates
Update June 11: Is Lucid Motors' rise justified? After a leap of over 36% in Churchill Capital Corp IV (NYSE: CCIV) – the company merging with LCID – doubts are creeping in. Shares of the SPAC company have been benefiting from moves in flows into various electric vehicle stocks. However, as an article in The Economist shows, there is substantial competition over being "the next Tesla." After kicking off Friday's session with a minor upswing, CCIV shares are in the red once again, changing hands at $25.35 at the time of writing.
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