- NYSE:CCIV drops by 38.63% amidst another tumultuous day on the global markets.
- Churchill Capital Corp IV confirms the long-awaited merger with electric vehicle company Lucid Motors.
- Initial valuations of the company indicate a sky-high $68 billion market cap.
NYSE:CCIV has been the hottest SPAC IPO stock over the past couple of months, recently hitting a 52-week high of $64.86. On Tuesday, as the broader markets were hit with another rocky trading session, CCIV sank by an astounding 38.63%, effectively cutting its 52-week high price in half. Shares began trading at $9.60 as with most SPACs, but the stock price quickly escalated as CCIV was linked with electric vehicle company Lucid Motors soon after it debuted on the public markets.
This merger was confirmed on Monday, but by Tuesday, shares had plummeted to their current price levels. Lucid Motors was founded by former Tesla Chief Engineer Peter Rawlinson and has plans to release its first vehicle, the Lucid Air, at some point in 2021. Lucid also has ties to the Saudi Arabia sovereign wealth fund, so needless to say, it has more than enough financial backing for the moment. The Lucid Air is intended to compete directly with the luxury electric vehicle space that has been dominated by Tesla’s Model S sedan.
CCIV stock forecast
Despite the anticipation that followed the CCIV and Lucid merger, when the actual financials were released, investors had a serious case of cold feet. At its sky-high stock price and valuation, would lend to the company having a market cap of $68 billion which would make it more valuable than established automakers like Ford (NYSE:F) and Li Auto (NASDAQ:LI), as well as put it in the same realm as NIO (NYSE:NIO) and General Motors (NYSE:GM). Needless to say, that is an exorbitant valuation for any company that does not even have a product on the roads.
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