Churchill Capital IV SPAC May Take Tesla Rival Lucid Motors Public

Churchill Capital IV SPAC stock soared 32 percent on Jan. 11. The stock trades on the NYSE under the ticker symbol “CCIV.” CCIV stock popped up on reports of a possible merger with a Tesla competitor. Is CCIV stock a good investment?

Churchill Capital IV is a blank-check company formed by Wall Street veteran Michael Klein. He's also one of the most active figures in the SPAC space alongside Chamath Palihapitiya and Bill Foley. 

In October, Klein struck a deal to take healthcare management solutions provider MultiPlan public through his Churchill Capital III SPAC. Klein is in the process of launching additional SPACs under Churchill Capital Corp VI and Churchill Capital VII.

Churchill Capital IV SPAC raised more than $2 billion in 2020. It intended to use the funds to acquire a private company and then take it public. According to a Bloomberg report, the SPAC may acquire electric vehicle company Lucid Motors. 

Lucid targets the luxury electric vehicle market and plans to sell its cars under the Air brand. Its first model to come to market will be a sedan that costs $169,000. Production of the luxury LucidAir sedan is set to start in the spring. The company said that the car will be able to drive more than 500 miles on a single charge. Lucid Motors plans to introduce more affordable models, including one that would cost less than $70,000, in 2022.

Some investors think that Lucid Motors could be the next Tesla. The company's chief executive is former Tesla engineer Peter Rawlinson. He worked on Tesla’s Model S sedan. If the talks produce a deal, CCIV stock will convert into Lucid Motors stock and investors look excited at that prospect.

Nikola and Fisker are the other electric vehicle companies that went public through SPAC deals. Investors who missed those deals hope for a second chance with Lucid Motors.

CCIV stock has become a major talking point on Stocktwits following reports about the potential merger with Tesla rival Lucid Motors. Churchill Capital IV bulls and bears on Stocktwits are weighing on the stock’s future.

A Stocktwits investor going by the name Norsa is bullish on CCIV stock and said, “To the moon we goo.” Another investor going by the name ShowMeTheMonies wrote, “Adding more soon! Let’s go while its cheap.” 

However, some investors are cautious. A Stocktwits investor going by the name Sofa_King_Good said, “Good for you guys but the EV industry is going to leave dotcom style hole when it all comes crashing down.” Another investor going by the name StockPandaBear said, “Staying away until deal confirmed.”

The talks between Churchill Capital IV SPAC and Lucid Motors are still ongoing. There isn't a guarantee that the talks will produce a deal. However, CCIV stock should move higher if a deal is confirmed. For now, it would be best to approach CCIV stock cautiously.

Combining with Lucid Motors would be a big win for CCIV stock investors because the electric vehicle industry has bright prospects. Churchill Capital IV is one of the largest SPACs out there. It could still land a good deal even if the talks with Lucid Motors fall through.