When it went public in July 2020, Churchill Capital Corp. IV (NYSE: CCIV) raised more than $1.5 billion, making it one of the most eagerly awaited Special Purpose Acquisition Companies (SPACs).
And on February 22, 2021, after the market had closed, Churchill Capital Corp. IV made an announcement on its merger with Lucid Motors. As shares continued to drop in price, investors were given a unique chance.
Interest in purchasing the CCIV dip? Find out how to purchase CCIV stock right now by selecting a brokerage.
How to Buy CCIV Stock Summary:
Due to CCIV’s listing on the NYSE, the procedure for purchasing shares is the same as it is for other publicly traded businesses.
Before purchasing CCIV shares, there are three key actions that must be accomplished, and each one needs choice-making on your part:
- Locate a broker and register: You must first open a brokerage account on your own behalf. Choose a broker that can assist you in achieving your individual investing goals after determining what they are. Make a personal account and connect a bank account.
- Deposit money: Now that your brokerage account has been opened and your bank account has been linked, it’s time to make a deposit. Make absolutely sure your broker offers instant trading if you want to trade right away, and only deposit money you can afford to lose.
- You should have no trouble locating shares to buy because CCIV is listed on the NYSE and actively traded. Just search CCIV and click “buy.” Simply click buy after finding the CCIV ticker symbol on your broker’s interface.
Why is CCIV Stock Up Since the Merger?
The value of Lucid Motors is undoubtedly the most important consideration for CCIV stock. And the honest—if a little dull—answer is that nobody truly does. This is a startup business with an unproven product in a market that is still developing, facing a bewildering array of both existing companies and up-and-coming rivals. In 20 years, Lucid Motors might dominate the automotive industry. It might be insolvent. It would be unwise to rule out any scenario outright.
Having said that, we can set certain boundaries for appraisal. 207 million shares of Churchill Capital IV will be distributed to shareholders at an effective price of $10; 166.7 million shares of PIPE (private investment in public equity) were purchased by investors at a price of $15
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Regarding the news that today’s CCIV stock appreciated, Lucid Motors’ CEO and CTO Peter Rawlinson made the following comments.
“We are overjoyed to finalise our business merger with Churchill IV and go public. As we are ready to deliver the first Lucid Air electric sedans to customers later this year, Lucid has picked up even more steam.
Following the merger news, CCIV stock is experiencing a respectable amount of movement today. More than 9 million shares of the stock have been traded as of this writing. That is approaching the company’s 12.5 million share daily average trading volume.
The price of CCIV stock increased 1.7% on Friday and has increased by 131.6% from the year’s beginning.
How to Buy Churchill Capital (CCIV) Stock
Churchill Capital Corp. IV is one of the industry leaders and has been leading the SPAC sector’s firestorm. The New York-based blank-check business recently disclosed its intentions to merge with Lucid Motors, a producer of electric vehicles.
While buying shares of a high-flying SPAC like Churchill Capital carries risk, investing in any business has risk. Since the announcement of the company’s merger with Lucid Motors, the stock price has decreased by roughly 50%.
The High End For the CCIV Stock Price
On the high end, it becomes very clear that the bubble that produced the closing price of $57.37 on February 22. Even though Bloomberg had reported that weekend (quite accurately) that the purchase was being completed at a $15 billion valuation, CCIV stock ended up rising 8.4% that day (and briefly reached $63). The fact that Churchill stock increased on that news, as I noted at the time, strongly showed that at least some of the buyers were unfamiliar with how SPACs operated. At $63, Churchill had a $13 billion valuation on its own, indicating a pro forma value for Lucid Motors of almost $100 billion.
Churchill Capital Stock History
Churchill Capital Corp. IV has had the same upward price explosion as almost all other SPAC stocks. After setting a $10 per share price for its IPO in July 2020, CCIV soared to an all-time high of almost $60 in February 2021. Churchill Capital announced its intention to merge with Lucid Motors after the market closed on February 22.
Following the announcement of the merger, the price of CCIV stock fell by about 50%, reaching a low of $30 per share. Lucid Motors, an EV manufacturer based in California, was worth about $12 billion after the transaction. Despite the fact that this purchase had been speculated for some time, the sudden sell-off may simply be a classic sell-the-news response.
Bottom Line: Is CCIV Stock A Buy Or Sell?
But despite their limitations, I personally have the uneasy feeling that the fundamentals presented here understate how compelling the qualitative case is both Lucid Motors and the company, CCIV.
Once more, it’s worthwhile to listen to Rawlinson discuss his business. For example, Henrik Fisker is not as enthusiastic about his name-brand company (nor, admittedly, is Fisker initially targeting such a high-end market). According to Lucid, almost every aspect of the Air is an advance over current models from competitors, which include not only Tesla but also brans .