- CCIV nonetheless struggling after-effects of the Lucid Motors merger.
- Electrical Automobile (EV) sector to face rising competitors.
- CCIV shares nonetheless maintain sturdy retail curiosity.
One other day one other loss for CCIV shares because the post-Lucid Motors hangover continues. Granted it can not all be placed on CCIV shares shoulders because the broader market additionally appears to be struggling for momentum.
CCIV Inventory Worth
Churchill Capital IV shares fell to their lowest degree since February 1 as traders proceed to reevaluate the merger deal. Weak point within the broader market could have led to exacerbated losses for CCIV shares. Some revenue taking by early traders could also be hitting, now that losses from different investments are feeding by means of portfolios.
CCIV shares closed on Wednesday at $23.02 for a lack of 4.8%. CCIV shares peaked at $64.86 on February 18.
Late-stage traders are those struggling probably the most, as peak Lucid Motors merger fever hit social media. Regardless of CCIV shares launching at $10, merchants bid CCIV inventory as much as past $60. The hype of Lucid being the subsequent Tesla, and the brand new fairness market phenomenon of Worry Of Lacking Out (FOMO) seem to have been the primary components behind the spike.
Whereas the talk over whether or not certainly Lucid does handle to turn into the subsequent Tesla could or could not show appropriate, timing nonetheless performs a key position in markets. Markets not often go up in straight traces indefinitely and an appreciation of that magnitude requires cautious analysis and threat administration.
The opposite issue after all which was a particular affect on the CCIV collapse was the PIPE transaction being priced at $15 per share, a big low cost to $60. $15 was truly greater than the IPO launch value of CCIV at $10 which is the place an additional capital elevate by means of a PIPE transaction would usually have taken place.
CCIV Inventory Forecast
So the place to from right here. Effectively, now it begins to look barely extra engaging. The troubles over FOMO buying and selling at $60 have evaporated. So it’s only a case of making an attempt to worth what you might be left with, which is Lucid. Supply delays have hit the newswires just lately which can be behind among the sell-off. Lucid now anticipated to start deliveries within the second half of 2021 and never Spring 2021 as initially hoped. This could hopefully create a pleasant catalyst for the shares, assuming all goes effectively. Actually, preliminary photos of the automobile are spectacular and with a former Tesla Chief Engineer on the helm, one would count on the know-how to be sound.
Lucid Motors has a restricted timeframe to launch and achieve traction with customers. The competitors will improve for all EV producers as increasingly more legacy automakers decide to going absolutely electrical. Current feedback from Volvo about being absolutely electrical by 2030 and Ford that it will likely be absolutely electrical in Europe by 2030 are proof of that.
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