Rumors and desires are sending Churchill Capital IV (NYSE:CCIV) to the moon on Friday, with buyers hoping for affirmation of a Lucid Motors SPAC merger quickly. One purpose for all the hypothesis is the potential for Lucid to disrupt Tesla (NASDAQ:(TSLA)) and its electrical automobile dominance. So with “Merger Monday” the discuss of the city, here’s what it is advisable to find out about CCIV stock.
The story right here is easy, minus the dearth of merger affirmation. Bloomberg reported the blank-check firm was in talks with Lucid Motors, and buyers have been celebrating ever since. We now have seen pops and drops within the meantime, and Churchill Capital government Michael Klein has been working to tamper expectations.
Nevertheless, these expectations are as soon as once more climbing. As of this morning, CCIV stock followers are arming themselves with a brand new report within the Los Angeles Instances. In keeping with author Russ Mitchell, Lucid Motors and Churchill Capital are closing in on a deal. In keeping with social media customers, which means affirmation might be coming after the weekend. With out commentary from the businesses or the requisite U.S. Securities and Alternate Fee filings, that is nothing however hypothesis.
Nonetheless, hypothesis is highly effective, particularly due to what Lucid Motors guarantees to disrupt. So with a lot hype driving CCIV stock, how are you going to examine Lucid Motors to Tesla?
CCIV Stock: Lucid Motors vs. Tesla
To begin, the 2 firms have lots in frequent, and Lucid is already positioning itself as a Tesla killer. Like Tesla, it’s trying to lead within the luxurious passenger EV market, and its Air instructions aggressive specs. CEO Peter Rawlinson truly received his repute because the Model S engineer for Tesla, and has been described as a equally charismatic and quirky chief. In contrast to Musk, Hannah Elliott wrote for Bloomberg that Rawlinson is an inventive type who as soon as thought of pursuing artwork faculty.
Nevertheless, there are two variations that buyers ought to take note of. The primary, and maybe the obvious, distinction between the 2 firms is that Tesla is a longtime, industry-leading automaker that has additionally put legacy manufacturers like Ford (NYSE:F) and General Motors (NYSE:GM) to disgrace. It has a number of models accessible and a global footprint. Lucid Motors however is simply getting off the bottom, planning to begin deliveries of its flagship Air later this yr.
However the second distinction is what has CCIV stock on the transfer. Rawlinson advantages from his publicity to life at Tesla — he is aware of what to tweak to beat the enormous. As Joann Muller wrote in the present day for Axios, that distinction is that Lucid Motors has a “methodical” manufacturing plan. Lucid has a manufacturing facility underway in Casa Grande, Arizona, that in the future can be able to producing 400,000 automobiles. As an alternative of ramping to that in a single day, the corporate is embracing just-in-time provide chains. This implies it’ll regularly construct capability as capital permits, beginning with simply 7,000 automobiles in 2021.
The Backside Line
Lucid Motors is taking this manufacturing strategy to keep away from what some have dubbed a “production hell” at Tesla. That doesn’t assure Lucid Motors can have higher — and even equal — success than Tesla. Nevertheless, for these attempting to get in on the bottom flooring earlier than a Lucid Motors SPAC merger, it’s one other justification for the hype.
For buyers then, proceed to proceed with warning. There’s a lot to love about Lucid Motors, however there are additionally loads of dangers.
On the date of publication, Sarah Smith didn’t have (both instantly or not directly) any positions within the securities talked about on this article.
Sarah Smith is a Net Content material Producer for InvestorPlace.com.