Verified Facts About the Possible CCIV and Lucid Motors Merger
By: Andrew Martin
Tags: Stocks, Green Energy, Investing, Electric Vehicles, Stock Market

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Verified Facts About the Possible CCIV and Lucid Motors Merger

The rumored collaboration between the SPAC and the emerging EV car manufacturer has set the stock investing world on fire Andrew Martin Follow Jan 24 · 4 min read

Rumors and fervent hopes have run rampant over the past couple of weeks due to speculation that SPAC CCIV (Churchill Capital Corp IV) might merge with emerging EV company Lucid Motors. It has helped the stock more than double during that time, including a giant 30% jump on January 22nd alone, despite no merger being announced yet. With each passing day, excitement and theories mount but what do we know for certain at this point?

At $23.41 per share, CCIV is currently well above its initial offering price of $10. The enthusiasm over a possible merger and the highly anticipated potential of Lucid Motors has driven the price skyward. With neither company publicly commenting about the other, speculative investors have had to rely on bits of information here and there to make their decision about whether or not to jump in — with the hope that doing so will ultimately result in a successful merger and Tesla-like price raises as their vehicles start to hit the market. Pertinent facts are few at this point but here is what we have so far:

-A January 22nd Los Angeles Times article asserted that a CCIV and Lucid Motors pairing was all but done, reporting “In a deal that is near completion, according to a source familiar with the negotiations, the company would draw a hefty but as-yet undetermined amount of cash to fund its operations.”

-Lucid Motors Chairman of the Board of Directors, Andrew Liveris, is also an operating partner of CCIV. If Lucid is seeking to go public via a SPAC, there’s nothing to say it has to be with CCIV, but the connection would seem to indicate a strong match given the familiarity. Not only that but he also has strong ties with Public Investment Fund (PIF) of Saudi Arabia, who is currently a major investor of more than $1 billion in Lucid.

-Lucid Motors is planning on starting sales of its luxury Lucid Air vehicle during the second quarter of 2021. They are also building a mammoth factory in Arizona with plans to eventually construct another facility in Saudi Arabia (a condition of PIF’s investment).

-CCIV had been in talks to potentially acquire AT&T’s DirectTV satellite-television, but those discussions did not come to fruition. They are still looking for a dance partner and have the kind of capital that would match up with a heavy hitter like Lucid.

-Lending credence to the belief that Lucid Motors is planning to go public, they have recently listed open positions on their website which include SEC Reporting Manager and Director of Investor Relations, Investor Relations and Analyst for Investor Relations. Obviously, these aren’t really necessary employees for a business that does not intend to go public.

-The Governor of PIF will be appearing on CNBC’s Squawk Street on Monday, January 25th. The topic(s) he will discuss are not yet known, but with his organization owning approximately 62% of Lucid Motors, it’s a good bet that the company will be broached.

Until it is officially announced that Lucid Motors is or isn’t planning to merge with CCIV, there appears to be no end in sight for the hoopla, nor probably the stock price volatility. While there is important information pointing towards the EV company going public and some interesting connections to CCIV, there is nothing concrete that could lead to an airtight conclusion that a deal is happening.

At this point, investors must take the puzzle pieces available and make the agonizing decision of which way they think the wind is blowing. From there, depending on the outcome, CCIV stock price will either soar or drop like a stone, with likely little gray area in between. This is a true lottery ticket with tremendous possible upside but also plenty of room for disappointment if it doesn’t come to fruition.

DISCLAIMER: The author is not a financial advisor or expert. The opinions expressed in this article are intended for general educational purposes and entertainment only. They are not intended in any way to provide specific advice or recommendations for any individual or on any specific security or investment product. Individual investors are responsible for their own money and investment decisions. The author holds a small position in the holding(s) discussed in the article.

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