Update: Churchill Capital Corp IV (NYSE: CCIV) has risen by 11.63% on Monday, closing at $24.95 after already hitting a high of $27.30. It is essential to note that the holding company's value has been rising at a rapid clip in recent days and has reached a valuation of $6.4 billion. Some investors are opting to cash in on profits, with Tuesday's premarket trading pointing to a drop of around 3% to below $24.50. Are some investors worried that Churchill would be unable to buy into Lucid Motors? Officially, all sides involved remain silent. Nevertheless, if the SPAC merger does go through, Lucid could pose substantial competition to Tesla. The Arizona-based electric vehicle firm is producing luxury cars that may outshine Elon Musk's models. More Best Stocks to Buy Forecast 2021: Vaccines and zero rates to broaden recovery
Chinese electric vehicles out, a new American one in? Churchill Capital Corp IV (NYSE: CCIV) is a Special Purpose Acquisition Company (SPAC) – or "blank check" –company with no business behind it. However, various press reports suggest that Churchill is on the verge of a merge with Lucid Motors – and that may be exciting.
Lucid's CEO Peter Rawlinson is the engineer behind Tesla's Model S, and his new venture may compete with Elon Musk's firm. The company is a smaller one that is working gradually and has its feet on the ground – contrary to Musk's often ambitious and unachievable financial goals.
For investors, the fact that Lucid Motors is currently small serves as motivation to jump into a potential growth story. Rawlinson's firm aims to produce 400,000 vehicles using just-in-time supply chains.
Will the merger go through? Investors could be disappointed if nothing happens on Monday, but if fresh media reports suggest that talks are on the cusp of an agreement, could keep CCIV shares bid.
CCIV stock forecast
NYSE: CCIV is set to continue rising while hopes for the Lucid Motors SPAC merger are high. If it does happen, the focus will likely shift to the prospects of the emerging EV company. Investors have been eyeing Nio, Nikola, Li Auto, and others, and have scarce knowledge about Lucid.
Currently, Churchill Capital Corp IV is valued at under $6 billion, which seems minuscule in comparison to other firms. Will
