SPACs, or special purpose acquisition companies have been some of the hottest opportunities.
Also known as “blank check companies,” these companies raise money through public offerings and then use the proceeds to acquire or merge with a business already operating. Many have been doing very well because of the industries they’re investing in, including electric vehicles, online gambling, and autonomous vehicles, for example.
One of the most explosive SPAC stocks has been Churchill Capital Corp IV (CCIV).
Founded by Michael Klein, the company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Since January 2021, shares of CCIV exploded from a low of $10 to about $65. All on speculation it was in talks merge with Lucid Motors, which some have referred to as the next Tesla. If the deal happens, it could be big, especially with Lucid having completed construction at its $700 million Arizona factory. It also has plans to start ramping up production.
According to The Detroit Bureau:
“The California-based EV maker is in the process of completing its manufacturing facility in Casa Grande, Arizona, but perhaps more importantly, its looking to tie-up the loose ends on a SPAC that could be valued at as much as $15 billion. The EV maker, which many view as a viable competitor with Tesla, is already backed by Saudi Arabia’s sovereign wealth fund, but is also looking to strengthen its financial resources.”
On the official announcement that CCIV would merge with Lucid Motors, CCIV turned lower on a sell the news reaction. However, keep an eye on the stock. Once the pullback is over, it could offer a great opportunity to take part in Lucid’s potential multi-billion-dollar success.