Full Answer
Why is Churchill capital IV stock trading lower Wednesday?
Apr 23, 2021 · There are a few likely reasons why Churchill Capital IV has attracted so much short interest. First off, the stock had run up to unsustainably high levels of around $65 prior to confirming the...
What happened to Churchill’s $24 billion price tag?
Feb 04, 2021 · What happened Shares of Churchill Capital IV ( NYSE:CCIV) were trading lower on Wednesday. The special-purpose acquisition company (SPAC), which has been linked to prominent electric vehicle (EV)...
Why did Churchill Capital Corp IV buy lucid?
Mar 04, 2021 · Churchill Capital IV , the special purpose acquisition company preparing to merge with Lucid Motors, was down about 5.3%. Electrameccanica Vehicles ( NASDAQ:SOLO ) was down about 8.1%. GreenPower ...
Why has Churchill shares surged more than 200%?
Feb 24, 2021 · Churchill Capital IV's stock price is down sharply since announcing its deal with Lucid Motors. Image source: Getty Images. Many investors were excited about the prospect of owning a piece of Lucid...
Why Churchill Capital went down?
Churchill Capital shares plunged in February when the SPAC announced its merger with Lucid Motors, as it became clear that investors had bid CCIV shares to unreasonable levels, up more than 400% from a starting point of $10.Apr 6, 2021
What happened to Churchill Capital stock?
As a result of the merger, Churchill Capital and Lucid Motors will be renamed Lucid Group. In addition to this, shares of CCIV stock will switch over to the LCID stock ticker.Jul 23, 2021
Why did Churchill Capital stock go up?
What happened. Shares of Churchill Capital IV ( CCIV ) have had more of a wild ride in 2021 than most other special purpose acquisition companies (SPACs). The stock soared more than 450% as investors anticipated a merger announcement with promising electric vehicle (EV) company Lucid Motors.Jul 12, 2021
Is Churchill Capital a buy?
I personally would rate CCIV a hold for most, and a potential buy for those with some appetite for risk who are looking for an investment with a strong return outlook in a bullish scenario.May 17, 2021
Who owns Churchill Capital?
Michael KleinOur founder, Michael Klein, is also the founder and managing partner of M. Klein and Company, which he founded in 2012. M.
Who owns Lucidair?
CEO Peter Rawlinson leads the company At the helm of Lucid is Peter Rawlinson, a former chief engineer of the Model S under Elon Musk, Tesla's CEO. He left Tesla after three years, feeling frustrated and limited in his work there.Feb 28, 2022
Is CFVI stock a buy?
The last trade was done 410 days ago by Cfac Holdings Vi, Llc who sold 1.13 million shares. In general the insiders are selling more stocks than they buy....Predicted Opening Price for CF Acquisition Corp. VI of Tuesday, April 12, 2022.Fair opening price April 12, 2022Current price$11.26$11.29 (Overvalued)
Is Churchill Capital buying Lucid?
Lucid completed the previously announced merger with Churchill Capital Corp IV on July 23, 2021. The combined company will now operate as Lucid Group, Inc.Jul 26, 2021
Is CCIV a good long-term investment?
After it's merger with EV maker Lucid Motors, investors hope that the stock prices will grow over time. However, because Lucid Motors is a startup, it might take a while for it to gain standing in the EV market. Therefore, the CCIV is a good long-term stock that requires a patient investor.May 24, 2021
How the deal is structured
Over the weekend, Bloomberg reported that a deal might be imminent, suggesting that the announcement could come as soon as Tuesday. The valuation that Lucid was rumored to fetch was around $15 billion. The structure of the deal was always going to be a major risk for anyone investing in Churchill Capital IV based on the speculation.
Valuation matters
Generally speaking, when a SPAC is negotiating a merger deal with a target, they have different incentives in place for the valuation. The SPAC prefers a lower valuation, since that allows it to acquire a larger ownership stake in the target company with the money at its disposal.
What happened
Shares of Churchill Capital IV ( CCIV ) were trading lower on Wednesday. The special-purpose acquisition company (SPAC), which has been linked to prominent electric vehicle (EV) start-up Lucid Motors, fell after The Wall Street Journal reported that a deal with Lucid isn't imminent.
So what
Shares of Churchill have surged more than 200% since Bloomberg reported on Jan. 11 that the SPAC was close to a deal to merge with Lucid, a start-up manufacturer of luxury EVs that is close to beginning production of its first model.
Now what
Given how the stocks of other EV start-ups have soared over the last year, it's no surprise that many investors would like to invest in Lucid. That's why Churchill's stock has run up over the last few weeks, and the Journal 's report -- that no deal is imminent -- is why it's down today.
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Is the $1.9 trillion relief bill bearish?
Congress. Some investors are concerned that the huge amount of money could trigger inflation, which has been low for a long time. Rising inflation is bearish for high-growth stocks, which include all of the names here.
Is Tesla selling down?
Some are unique to Tesla, but it's likely feeling the macroeconomic pressure as well. And given that many of the electric vehicle stocks traded up on hopes that they might follow in Tesla's high-flying footsteps, it's no surprise to see them trading down as Tesla sinks.
What was Churchill's stock price on Feb 18?
Churchill's stock price surged to a high of $64.86 on Feb. 18 following reports that the SPAC was in talks to merge with Lucid. Yet since the two companies made their merger agreement official on Monday, Churchill's shares have shed approximately half their value.
How much does Churchill own Lucid?
The deal values Lucid at $24 billion. Churchill's shareholders will own 16.1% of Lucid after the merger. So, what's the problem? Well, investors had bid Churchill's market cap up to roughly $15 billion ahead of its merger announcement.
A Look at CCIV Stock
In a highly-volatile and toxic nutshell, in early January special purpose acquisition company Churchill Capital became an overnight sensation.
CCIV Stock Weekly Price Chart
If you’re an active investor, trying to locate the “next” of anything is a largely elusive goal. Alphabet (NASDAQ: GOOGL ). Microsoft (NASDAQ: MSFT ). Apple (NASDAQ: AAPL ). Those generational investments have no heir apparent. Tesla? Maybe less so given the nature of the auto industry.
