![]() ![]() ![]() Others are in it with a much longer time horizon in mind. ![]() That is, they’ve bought in since May, following its sell-off, in anticipation of it popping once its headline-making transaction closes. Investors keen on Churchill Capital IV, soon to be Lucid stock, are bullish for many reasons. Not only that, facing competition from not just Tesla, but incumbent brands as well, there’s still a big chance it falls short of expectations.Īs shares remain pricey ahead of the deal close, the best move may be to hold off for now. So, should you take this as a reason to buy in today at nearly $27 per share, with the hopes of flipping it at a higher price? Looking at a similarly buzzed-about blank-check company that recently “deSPACed,” don’t count on this strategy being an easy way to fast profits.Īs for its longer-term prospects, while Lucid may have the potential to become the next Tesla (NASDAQ: TSLA), it’s already priced that way. As InvestorPlace’s Brenden Rearick reported, Lucid is hosting a presentation on today, ahead of the deal vote.ĭepending on what’s discussed in this presentation, it may be enough to spike enthusiasm for Churchill shares once again. I'm a great believer that the first product defines the brand in way Tesla model S defined Tesla as a brand,” Rawlinson told Yahoo Finance in October of last year.The deal close is fast approaching. “I think it's really important that we start at a high-end position as a true luxury brand. The company aims to meet production goals for of its most expensive vehicle, the Air Dream Edition this year. Lucid Motors placed its first US production factory in Casa Grande, Arizona. The company's CEO and CTO Peter Rawlinson was the chief engineer at Tesla ( TSLA) for the model S prior to joining Lucid Motors in 2013. Lucid Motors has been closely watched since it is competing in the electric luxury sedan space. A deal with Churchill Capital IV is one of highest profile EV SPAC agreements since Nikola ( NKLA) and Fisker ( FSR) debuted publicly last year. The electric vehicle maker is backed by Saudi Arabia’s sovereign wealth fund. On Monday the stock had gained double digit percentages after a Bloomberg report said an agreement announcement could come by Tuesday. In mid-February shares of Churchill Capital IV, led by investment banker Michael Klein, surged 30% following a report of a nearing agreement. Speculation over an agreement had been circulating for more than a month prompting previous spikes in CCIV stock. The deal has a transaction equity value of $11.75 billion which includes a cash contribution from CCIV of $2.1 billion, and a PIPE investment of $2.5 billion with a lock-up provision that “binds holders well beyond closing.” It will provide the electric vehicle company with approximately $4.4 billion in cash. The transaction, announced on Monday evening, values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE (private investment in public equity) offer price of $15.00 per share. ET, though coming off their session lows. ![]() Shares of Churchill Capital were down around 25% at 10:45 a.m. Lucid Motors and blank check company Churchill Capital IV ( CCIV) confirmed a merger deal to take the California-based EV company public. ![]()
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