Lucid Motors Stock Price: CCIV shares drop as SEC looks at SPAC's and NIO suspends production

Update March 26: CCIV shares are suffering on Friday, dropping 2% in early trade. NIO suspending production for five days is likely not helping. The SEC announcing it is to look into SPAC deals is also weighing on CCIV. Churchill/Lucid shares are trading at $23.53 on Friday, down 2%.

Update March 25: Shares in CCIV/Lucid Motors continue to struggle on Thursday. Surprising, given the huge rallies seen in other meme stocks. Gamestop and AMC are up 20 and 40% respectively! CCIV shares are currently $22.20 on Thursday, down 1.7%. The SEC is looking closely at the SPAC sector.

The sun is shining and birds are chirping – spring has officially begun and it may see Churchill Capital Corp IV (NYSE: CCIV) blossoming. Shares of the blank-check company that recently announced a SPAC merger with Lucid Motors has reasons to spring higher. 

When Peter Rawlinson, Lucid's CEO, spoke with CNBC's Jim Cramer, the headline was "bring on the competition." The former Tesla engineer referred to the rumored Apple Car rather than products from his former employer, but he may be on the cusp of competing with Elon Musk in another field – batteries. 

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The company is set to enter the energy storage market with its batteries. At this point, the plans are preliminary and for an initial experiment. It also remains unclear if the energy would be used for commercial or residential clients, but the expansion story is promising. 

The last piece of news comes from the other side of the world. The Arizona-based electric vehicle company is looking to sell cars in Europe and filed papers in the EU's Intellectual Property Office in Brussels. Images leaked show its future Gravity SUV, which will is set to roll out only in 2023. Nevertheless, seeing a picture of a future car provides investors with hope about additional products in Lucid's pipeline. 

Manufacturing additional vehicle types would allow Lucid Motors to increase its cash flow, especially as its current order book is "filling up." The current offering of Lucid Air cars is set to show up on the streets in the second half of 2021. 

CCIV Stock Forecast

This growth story described above should allow publically listed Churchill Capital Corp IV (NYSE: CCIV) to rise after several turbulent weeks following the SPAC merger. After soaring, shares suffered a "buy the rumor, sell the fact" episode, and the dust has yet to fully settle. 

Traders that have bought equity at the lofty highs above $60 are still licking their wounds, while bargain-seekers that scooped up shares at the March trough of $22.09 are happy to see prices stabilize above $26.

Lucid Stock Price

The recent news is set to boost shares early on Monday, with pre-market trading data pointing to an increase of over 2% to $27.60. Investors are eyeing the psychological barrier of $30 and it is followed by last week's closing high of $31.10 as the next upside target.

Looking down, some support awaits at $26.77, followed by $24.40. Both were levels where Lucid's stock (still represented by the CCIV ticker) found its feet in recent weeks. 

Previous updates

Update March 24: Churchill Capital Corp IV (NYSE: CCIV) has kicked off Wednesday's trading session with a bounce above the $24 level and paring a small part of its losses recorded on Tuesday. One of the factors weighing on the SPAC company is a news related to its merger with Lucid Motors. While the electric vehicle company has reasons to rise (see below), an SEC filing has revealed that negotiations took only 12 days, causing concerns that the acquisition was not thoroughly done. It is also essential to note that broader stock markets are sensitive. 

Update March 23: Churchill Capital Corp IV (NYSE: CCIV) shares lost more than 2% on the first day of the week and continued to push lower after the opening bell on Tuesday to touch the lowest level in two weeks at $24.07. As of writing, CCIV was trading at $24.10, losing 7.85% on a daily basis. Earlier in the day, Lucid Motors announced that Michael Bell joined the company as the Senior Vice President of Digital and Achim Pantfoerder became the new Vice President of Program Management. Finally, Nicolas Minbiole was named as the Vice President of Global Quality of the electric vehicle manufacturer.

Update CCIV shares continue to slide on Tuesday despite Lucid tweeting on Monday that its high spec Dream edition of the Air sedan is sold out. The Dream Air sedan is to retail for $161,500 so a few stimulus checks needed for that one! Delivery is on track for the second half 2021 according to an earlier release from Lucid.

Update March 23: Churchill Capital Corp IV (NYSE: CCIV) has concluded Monday's trading session at $26.15, a drop of 2.72%. Shares of the SPAC company which recently announced its merger with Lucid Motors has suffered from a more cautious market mood ahead amid speculation of vast infrastructure spending in the US. The White House is reportedly mulling a $3 infrastructure plan deployed in two phases. While President Joe Biden's initiative may include green investment, details are missing and concerns about rising rates are weighing on equities.

Update March 22: Churchill Capital Corp IV (NYSE: CCIV) has kicked off Monday's session with a jump to around $27.50 but has quickly retreated, dropping by 1.8% to $26.33. Shares remain in familiar ranges recorded in recent weeks, despite a slew of developments related to Lucid Motors. These are described below and may trigger action later on. The broader S&P 500 Index is marginally higher. 

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