How to Buy Churchill Capital Corp (CCIV) Stock

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Contributor, Benzinga
May 21, 2021

Churchill Capital Corp. IV (NYSE: CCIV) raised over $1.5 billion during its July 2020 IPO, making it among the most highly-anticipated Special Purpose Acquisition Companies (SPACs). 

And after the market closed on February 22, 2021, Churchill Capital Corp. IV announced its merger with Lucid Motors. Shares proceeded to sell off, presenting an interesting opportunity for investors. 

Interest in buying the dip in CCIV? Learn how to choose a brokerage and buy CCIV stock today.

How to Buy (CCIV) Stock Summary:

CCIV is listed on the New York Stock Exchange (NYSE), so the process for buying shares is the same as for other publicly-traded companies. 

There are 3 main steps to complete before buying shares of CCIV, and each requires decision-making on your part:

  • Find a broker and sign up: The first thing you need to do is create your own brokerage account. Determine your personal investing goals, and select a brokerage that can help you meet them. Create your own account, and link your bank account.
  • Deposit funds: After you open a brokerage account and link your bank account, it’s time to deposit funds. Deposit only funds you can afford to lose, and if you want to trade immediately, make sure your broker offers instant deposits.
  • Search CCIV and hit buy: Since CCIV is listed on the NYSE and commonly traded, you should have no problem finding shares to buy. Simply search for the CCIV ticker symbol on your broker’s interface and hit buy.

How to Buy Churchill Capital (CCIV) Stock

The SPAC sector has been on fire, and Churchill Capital Corp. IV is among the leaders. The New York-based, blank-check company recently announced its plans to merge with electric vehicle company Lucid Motors.  

While investing in any company involves risk, purchasing shares of a high-flying SPAC like Churchill Capital involves more than usual. The company’s stock has almost been cut in half since announcing its merger with Lucid Motors. 

While this could present an enticing entry price, be sure to know the risks before investing.

  1. Pick a brokerage.

    The first step to buying shares of CCIV is to pick a brokerage. Very few brokers still charge commissions for trades, so you should be able to buy shares of CCIV with no additional fees.
    Consider your investing experience and future goals to narrow your list of the best brokers. Once this is done, it should be far easier to choose the best broker for your unique needs. If you want to practice before risking your own money, select a brokerage that offers paper trading.  

    Another thing to consider are any perks or promos offered by potential brokers. You could end up with bonus trading funds or even free stocks. 

  2. Decide how many shares you want.

    Once you have your own brokerage account opened up, you next need to decide how many CCIV shares you want to buy. Some factors to consider include your age and time horizon, your net worth and your appetite for risk.

    Investing more than a few percent into a single stock is risky, especially when that stock is a high-flying SPAC. It may also be important not to buy too many shares of CCIV and consider setting a stop-loss in case the stock declines rapidly.

    Once you have considered these factors and settle on an amount of shares to buy, start looking for a good entry point. 

  3. Choose your order type.

    Now that you have decided how many shares of CCIV to buy, you need to decide what order type to use. There are numerous order types, and each has its pros and cons depending on the individual investor and the investment opportunity.

    Use a market order if you want to buy shares of CCIV immediately and at the prevailing National Best Bid and Offer (NBBO) price. Use a limit order if you are willing to delay buying shares until the price reaches your pre-set price point.

    Market orders allow for a quicker entry into a position, while limit orders provide traders with much more control over their risk. It’s usually a good idea to use limit orders when buying shares in a volatile stock such as CCIV. 

  4. Execute your trade. 

    Now that you have opened a brokerage account, decided how many shares to buy, and settled on the best order type to use, it’s now time to execute your trade. 

    Simply hit buy to send your order to your broker. Once the order is filled, your shares of CCIV will show up in your account.

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Churchill Capital Stock History

Almost every SPAC stock has exploded to the upside, and Churchill Capital Corp. IV is no exception. After pricing its July 2020 IPO at $10 per share, CCIV exploded to an all-time high of over $60 in February 2021. After the market closed on February 22, Churchill Capital announced it will merge with electric vehicle company Lucid Motors.

Following the merger announcement, CCIV stock declined by nearly 50% to a low of $30 per share. The merger deal valued California-based EV maker Lucid Motors at around $12 billion. While this is a sharp sell-off, this deal had been rumored for a while, and it may be a classic sell-the-news reaction.

Lucid Motors was founded in 2007 and began developing its first vehicle — the Lucid Air —  last year. In 2019, Lucid Motors received an investment of more than $1 billion from the Saudi Arabia Public Investment Fund. 

Later that year, the company opened up a $700 million manufacturing facility in Arizona. As of 2021, Lucid Motors has 2,000 employees, many with past experience in the automotive industry.

Pros to Buying CCIV Stock

While the SPAC and electric vehicle spaces can be extremely volatile, an investment in Churchill Capital Corp. IV could draw benefits from:

  • Governmental regulation: With the Democrats in control, U.S. energy policies could continue to help electric vehicle companies. Especially after the power outages in Texas, the federal government could look to take a more active role in regulating energy in general. If this results in more EV subsidies or other ‘green energy’ policies, Churchill Capital/Lucid Motors could be a major beneficiary.
  • Market trends: Electric vehicle stocks such as Tesla (NASDAQ: TSLA) have been among the strongest sectors in the market over the past year. Churchill Capital has already taken advantage of this momentum, with the stock rocketing from $10 to over $60 in 6 months. If Tesla and the rest of the EV space can continue to grow, Churchill Capital could be poised for further gains as they transition to Lucid Motors.

Cons to Buying CCIV Stock

While there is certainly a big upside to investing in Churchill Capital Corp. IV, some risks to keep in mind include:

  • Too much competition: With Tesla’s recent success in 2020, competition has quickly moved in. As of 2021, there are now dozens of EV-related stocks that investors can choose from. If more competition continues to enter the space, Lucid Motors could have difficulties distinguishing themselves from the competition. If things go wrong, look at Nikola (NASDAQ: NKLA) to see what the downsides are to SPAC/electric vehicle plays.
  • Market correction: Another risk to owning shares of CCIV is an overall market correction. Following the announcement of their merger with Lucid Motors, the stock declined by nearly 50%. As a result, any sharp market declines could cause a stock as volatile as CCIV to decline dramatically.

Buy CCIV Today

With the high-flying SPAC recently announcing a merger with an electric vehicle company, Churchill Capital Corp. IV and its stock could be poised for further gains. 

While the long-term outlook for electric vehicles is bright, there is stiff competition and ample risk in the space. It may be important to be more conservative in your investment, and only risk money you can afford to lose.