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Summary
- Stocks of blank check company Churchill Capital IV (NYSE:CCIV, CCIV:US) shot up by over 16 per cent on Monday, April 27.
- Lucid Motors is currently in talks with the special purpose acquisition company (SPAC) for a reverse merger to go public.
- Lucid and Churchill Capital’s reverse merger is reportedly set to be worth US$ 11.75 billion.
Stocks of blank check company Churchill Capital IV (NYSE:CCIV, CCIV:US) shot up by over 16 per cent on Monday, April 27.
The spike came following rumors that electric vehicle (EV) company Lucid Motors is partnering with Apple (NASDAQ:AAPL, AAPL:US).
Lucid Motors is currently in talks with the special purpose acquisition company (SPAC) for a reverse merger to go public. Hence, speculation regarding the EV maker manufacturing the 'Apple Car' sent CCIV stocks soaring.
Apple, which is trying to enter the automobile industry with Apple Car, has been looking for a manufacturing partner for its EV for quite a while now. Since Lucid has developed an advanced driver-assistance system (ADAS), both companies might join forces to create the electric vehicle.
Lucid is already being considered a rival to Elon Musk's Tesla Inc (NASDAQ:TSLA, TSLA:US. It was founded in 2007 by Peter Rawlinson, who was an engineer at Tesla and had reportedly helped the company develop the Tesla Model S.
According to a report of Allied Market Research, the global EV market was valued at US$ 162.34 billion in 2019 and it is estimated to reach US$ 802.81 billion in the next six years.
©Kalkine Group 2021
A Look At CCIV Stock Performance
Lucid and Churchill Capital’s reverse merger is reportedly set to be worth US$ 11.75 billion. Following the confirmation of its merger rumors in February this year, CCIV stocks skyrocketed by nearly 139 per cent year-to-date (YTD). In the past month, the SPAC stock grew by about four per cent.
At market close on April 26, CCIV shares were priced at US$ 23.87 apiece, 63 per cent down from its 52-week high of US$ 64.86 (February 18, 2021).
Six-month chart of stock performance of CCIV (Source: EODHD/Others/Thomson Reuters)
Law Firm Announces Investigation Against CCIV
Los Angeles-based Schall Law Firm recently announced that it will be investigating Churchill Capital on the charges of issuing false/misleading statements or failing to disclose relevant information to its investors.
In February, when CCIV and Lucid Motors' merger was announced, it was revealed that Lucid will manufacture 557 vehicles this year. This figure was down from that of 6,000 vehicles that the company has projected before the announcement of the merger.
