SPACs (special purpose acquisition companies) have been quite popular among investors in recent days and one of the SPAC stocks that could be worth tracking at this point is that of Churchill Capital Corp IV (NYSE:CCIV).
The much anticipated merger with the electric vehicle company Lucid Motors is now a couple of weeks away and hence, the excitement around the stock has hit fever pitch. Despite the excitement it is necessary to note that the momentum in the Churchill Capital stock and other electric vehicle stocks is perhaps a bit too strong. Hence, it might not be the best option for any investors who might be looking to get into a new electric vehicle play.
There are three important things for investors to note with regards to the Churchill Capital stock. The current valuations of the stock are completely out of sync with any kind of fundamental analysis. On the other hand, Lucid Motors does not have any revenues at all at this point and it goes without saying that such companies can be highly risky. Last but not the least, there are plenty of challenges for Lucid Motors before it can scale up its business sufficiently.
Market Reaction:
On Thursday, CCIV stock fell 2.20% at $24.96 with more than 9.05 million shares, compared to its average volume of 13.49 million shares. The stock had moved within a range of $23.54 – 25.55 after opening the trade at $23.99. Over the past 52-week, the stock has been trading within a range of $9.60 – 64.86.
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