Churchill Capital Corp IV Stock Continues To Charge Ahead On Lucid Motors Speculation

The link between Lucid Motors and Churchill Capital Corp IV CCIV shows no signs of slowing down and the deal could be getting close to being formally announced.

What Happened: Lucid Motors is nearing a deal with Churchill Capital Corp IV to go public. The deal would value the company at $12 billion, according to Reuters.

Churchill Capital Corp IV is working on raising between $1 billion and $1.5 billion in a private investment in public equity, commonly referred to as PIPE. The deal could be announced this month if Churchill Capital Corp IV can secure funds for the PIPE, according to Reuters.

Shares of Churchill Capital Corp IV were up earlier in the day with Lucid Motors CEO Peter Rawlinson appearing on Fox Business. The CEO discussed the company’s vehicle and battery plans for growth. A similar move in CCIV stock happened when Rawlinson appeared on CNBC earlier this month.

Rawlinson wouldn't comment on the rumors of a deal with Churchill Capital Corp IV.

Churchill Capital Corp IV shares were halted several times Tuesday.

Why It’s Important: Lucid Motors and Michael Klein’s Churchill Capital Corp IV appear to have come to terms on the valuation for the electric vehicle company. The key here going forward is securing additional funds to get the deal done.

Investors should remember that the $12 billion valuation would be based on a share price of $10 for CCIV. Given the huge premium for Churchill Capital Corp IV shares, Lucid Motors could be valued at over $60 billion based on around a 16% stake in the EV company.

Klein launched two new SPACs under the Churchill Capital umbrella with Churchill Capital Corp VI and Churchill Capital VII raising over $1.6 billion.

CCIV Price Action: Shares of Churchill Capital Corp IV closed up 32% to $52.70. Shares hit a new all-time high of $55 earlier in the trading session.

Disclosure: The author owns shares of CCIV.

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