Bright
- Churchill Capital IV was up 13% after a Bloomberg terminal update suggested a consortium of investors led by VC firm Venrock Associates wanted to sell Lucid Motors.
- It is rumored that Lucid and Churchill Capital IV have been in merger talks since Jan. 11.
- The news comes because Lucid plans to release its first production car this spring.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell
Churchill Capital IV (CCIV) stock rose a whopping 13% on Friday amid new signs that the company may be seeking EV maker Lucid Motors from an investment consortium led by VC firm Venrock Associates.
Traders responded to a Bloomberg terminal note that suggested CCIV was in talks with Venrock Associates and a group of Lucid investors. No new calls have been announced or otherwise reported.
Venrock Associates is one of the oldest investors in Lucid. The VC firm first bought into the business in 2009 in a $ 7 million Series B funding round when Lucid was still a small battery manufacturer called Atieva.
Read more: According to an analyst for the best-performing ETF in the world this year, these three cannabis stocks are “poised to be market leaders” and have the infrastructure to take market share when federal legalization occurs in the US.
Rumors of a possible sale or merger of Lucid Motors with CCIV have been circulating for a while.
On Jan. 11, Bloomberg first reported that Lucid Motors was in talks to go public through a merger with the specialty acquisition company. The news triggered a 50% rise in CCIV’s stock price in just two days. Since then, the stock has risen over 240% as investors continue to value the SPAC as if a deal with Lucid is in the works.
Lucid Motors first gained attention in the media with the introduction of its luxury EV, the Lucid Air. Even the base model of the electric car offers a range of 656 kilometers and a 0-60 kilometers of 2.5 seconds. The company says it will start at $ 69,900 with the inclusion of federal tax credits.
Lucid also recently made headlines after opening a manufacturing facility in Casa Grande, Arizona, where it plans to eventually produce 400,000 vehicles per year.
While there will be limited production of the company’s flagship Air Dream Edition for now, which starts at $ 169,000 and offers 1,080 horsepower and a range of 517 miles.
Lucid plans to produce its first salable cars from the Casa Grande factory this spring.
Churchill Capital IV was trading around 13%, at $ 35.60 a share, as of 9:56 AM ET on Friday.
Read more: Barclays says these 33 reports are buying stocks that are perfectly poised to capitalize on the reopening of the economy in the coming years.