Business - Companies
Updated: February 23, 2021

Lucid Motors Deal Sends Churchill Capital Corp IV Sinking

By Oluwatosin Ogunjuyigbe
February 23, 2021
0

Churchill Capital Corp IV (NYSE: CCIV) plunged by a whopping 45 percent on Tuesday following the announcement of its widely anticipated SPAC deal to buy hot electric-vehicle maker Lucid Motors.

Electric-vehicle maker Lucid confirmed it would go public via the special-purpose acquisition company run by financier Michael Klein with a projected equity value of $24 billion.

CCIV shares began to fall on Monday after the company announced its plans to buy Lucid at an $11.75B equity valuation. This is coming after CCIV shares surged as much as 279 percent intraday over the past month from a $17.11 low on January 21 to a $64.86 high last Thursday.

Investors, however, seem to have lost their enthusiasm for the SPAC now that the deal is set, as Churchill's latest stock performance is a reversal from previous sessions when reports on the deal sparked consecutive rallies.