Churchill Capital Corp IV:
Churchill Capital Corp IV is a check-writing firm. Via a merger, capital stock swap, asset acquisition, stock purchase, and reorganization, the Company hopes to acquire one or more companies and properties.
Asset Management is a sub-industry of the asset management industry. it is located at in640 Fifth Avenue, 12th Floor, New York. Established on 04-03-2020.
Long-term investors have benefited from the turbulence, especially in the relatively more mature EV start-ups that have the most potential. Here are five reasons why Churchill Capital IV (NYSE CCIV WS at https://www.webull.com/quote/nyse-cciv-ws), which is merging with Lucid Motors, is a great buy at $20.
Closer to PIPI
Churchill Capital IV shares fell below $20 for the first time since the merger was announced in February. Remember that after a month of rampant speculation, the PIPE (private investment in public equity) investors intended to buy at $15, an unusual arrangement due to the extenuating situation surrounding the offer. At $20, this is the nearest public investors have come (so far) to investing alongside financial behemoths like BlackRock and Fidelity.
Those PIPE holders have agreed to a lock-up clause, which prohibits them from selling their stock before either Sept. Since the de-SPAC deal is scheduled to be completed in the second quarter, shares will trade as Lucid Motors for a few months before the lock-up period expires. Investors will be following the start of Air shipments closely as we begin the second half of 2021.
It’s also worth noting that the SPAC’s sponsor has agreed to an 18-month lock-up clause. Churchill Capital and its operating team, which includes former Ford CEO Alan Mulally, are dedicated as long-term investors who want to bring as much value as possible by advising clients with the help of their network of industry veterans. Indeed, Lucid’s decision to postpone Air deliveries from the spring to the second half was influenced by Mulally’s advice, and the iconic auto executive’s guidance will be indispensable as Lucid ramps up production facilities.
Green in struggle
Companies in the same market, on the whole, prefer to trade in lockstep, for better or worse. Many EV SPAC stocks are extremely speculative, and some will undoubtedly struggle. To be clear, there have been several EV SPAC scandals, such as Nikola’s fraud charges or Canoo’s pivot to a completely different business model.
These events have rightfully shattered investor trust in the space, but long-term investors will profit from company-specific concerns that are leading to a sector-wide sell-off but do not extend to other businesses. Lucid’s vehicle, unlike Nikola’s, is self-propelled. Unlike Canoo, Lucid has a straightforward vision and go-to-market plan, which it is about to implement.
The stock’s price has also fallen significantly as a result of the drop. After the transaction closes, there will be around 1.6 billion shares outstanding, implying a market value of $32 billion at $20 per share. That means Churchill Capital IV shares are currently trading at 14.5 times projected revenue of $2.2 billion for 2022, which is almost identical to Tesla’s current forward sales multiple.
Looking to invest in Churchill Capital IV NYSE CCIV WS and Lucid Motors for the lengthy period should be based on the EV maker’s performance for the next three to five years, not on the stock’s short-term volatility. Investors who believe Lucid would be able to speed up production and deliveries with sales expected to hit $10 billion in 2024 and $23 billion in 2026 should buy now. You can find more stocks like nasdaq tsla which you can check at https://www.webull.com/quote/nasdaq-tsla.