Churchill Capital priced at $ 32.91 on Tuesday as Lucid merger confirmed
- The merger between Churchill Capital and Lucid Motors is finally completed.
- CCIV shares suffered a steep decline on Tuesday, as reported by PIPE.
- Lucid CEO presents plans for the future of Lucid Motors.
CCIV stock forecast
So the long-awaited merger from 2021 so far is underway. Churchill Capital IV (CCIV), the SPAC that made headlines this year, struck the deal to make Lucid Motors public. Investors had crammed into CCIV shares, pushing them above $ 60 as investors viewed Lucid as the next Tesla and the opportunity to get in early. And given Tesla’s impressive appreciation over the past few years, who could blame them.
Private investors became increasingly frustrated with Wall Street in 2020/21 and engaged in several companies in apparent frustration with what is seen as an American climate against them. Admittedly, individual investors find it difficult to get involved in IPO trading, and the appreciation of several IPOs immediately after launch has frustrated many retail investors.
As a result, money has flowed into SPACs (Special Purpose Acquisition Companies) which allow investors to get into companies before the IPO and hopefully avoid paying the post premium. -Initial Public Offering. Michael Klein’s Churchill Capital IV SPAC was seen as the perfect way to get into Lucid Motors and get a piece of a potential Tesla rival.
So now that the deal is done, how will the future of Lucid shareholders go? Well seen, Lucid CEO Peter Rawlinson is a former Tesla engineer who knows his product investors are firmly behind him. Lucid has ambitious plans to compete with Tesla and if he realizes those plans, it should indeed be rewarding for shareholders. Lucid is now well funded and able to move his plans forward.
During the 2020s and 2021s, the electric vehicle (EV) has entered mainstream automotive thought and is clearly the future. Traditional manufacturers, who once perhaps paid too little attention to the electric vehicle industry, are now struggling to catch up. In this regard, Tesla has had a comfortable lead and built an enviable brand.
Now Lucid is entering the fray as a well-funded, well-supported rival with ambitious growth plans.
See also CCIV Lucid CEO speaks with Reuters
Latest news on Churchill Capital
Shares of Churchill Capital closed at $ 35.21 on Tuesday, a loss of nearly 40%. Most likely, the PIPE trade weighed on the stock as the deal was confirmed. Lucid CEO Peter Rawlinson said “he had forecast a PIPE of $ 1 billion at $ 10 per share for the PSPC merger, but increased to $ 2.5 billion at $ 15 per share due to strong investor demand, âReuters reported. Rawlinson also spoke with Reuters and investors on Tuesday and outlined ambitious growth plans. Noting that the Lucid Air Dream edition is “virtually sold out”.
The next step is production of a cheaper version of Lucid Air, at less than $ 70,000, according to Reuters 2022 reports.
Peter Rawlinson also spoke about Lucid’s electric vehicle rival Tesla. Rawlinson said the company is ahead of Tesla in technology. Rawlinson also told Reuters that Lucid plans to launch a Tesla Model 3 rival in 2024 or 2025, that it is too early to make its own battery cells at this time, saying Lucid has contracts with LG Chem and Samsung SDI. Rawlinson also told Reuters that six automakers have expressed interest in Lucid’s technology and potential cooperation.
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