Don’t Buy CCIV Stock Now. But Pounce on the Lucid Motors Merger
Churchill Capital Corp IV (NYSE: CCIV) shares have soared in the past two weeks amid rumors that the company will acquire premium EV maker Lucid Motors. Such marbles have not been confirmed or denied by Churchill Capital or Lucid Motors. Nevertheless, the CCIV share has more than doubled through the merger talks alone.
Selective focus of a charged electric vehicle.
My two cents?
Don't buy CCIV stocks now. The rally is based on rumors. Rumors are dangerous. If they turn out to be untrue, Churchill Capital is just another ordinary SPAC, and CCIV will drop back to $ 10. In reality, none of us really have an inside look at whether Churchill Capital will merge with Lucid Motors. We all only shoot in the dark.
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Too risky for my taste.
But when Lucid Motors goes public - through a merger with CCIV or another SPAC - you'll immediately pounce on that stock. Lucid Motors is one of the highest quality games on one of the biggest megatrends of our lives.
It's a potential 10x investment that you will want to own for the long term (to learn more about potential 10x investment opportunities, click here.)
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But back to Churchill Capital Stock and Lucid Motors, let's take a closer look.
Electric vehicles are the future
Electric vehicles are the future.
This is now a foregone conclusion. The entire auto market is turning from gas-powered cars to electric cars. We are still in the early stages of this seismic shift. The EV penetration of all car sales in 2020 was less than 5%. This proportion is expected to increase by 30%, 40% and 50% plus over the next 10 to 20 years.
The EV revolution is clearly one of the best investment opportunities of the 2020s.
So far, this revolution has produced two huge winners: Tesla (NASDAQ: TSLA), the EV pioneer with the world's most powerful EVs, and Nio (NYSE: NIO), Tesla's little brother in China.
Lucid Motors will be the third big winner.
Lucid Motors is a long-term winner
The company is a luxury EV manufacturer that has assembled a world-class team of executives and engineers who, over the past few years, have developed a high-performance, super-slim electric vehicle called the Lucid Air that - when it hits the market - will compete with that Tesla Model S for luxury EV supremacy.
The Lucid Air looks fantastic on the surface alone. Leather interior. Large iPad-like control screen. Full glass windscreen that merges into a sunroof. Earthy tones that make the feeling even more environmentally friendly. Smooth and shiny exterior. Unique and futuristic headlights. A logo that reminds you of a private jet company (in fact, the design inspiration for the Lucid Air was a private jet).
The cover of this book drops a few jaws.
But it's not the look of the Lucid Air that excites me or makes tons of consumers buy it over the Tesla Model S. Rather, there are two major features: unmatched range and lightning-fast loading times.
The top of the line Lucid Air has a range of 517 miles, which exceeds the range of Tesla cars with the longest range and marks the new gold standard in the EV industry. At the same time, every Lucid Air has a hyper-fast charging function thanks to a unique onboard charging unit called the “Wunderbox”. With the right charger, Lucid cars can charge up to 300 miles in just 20 minutes - an industry record of at least 10 minutes.
In addition to these two huge performance benefits, the Lucid Air is equipped with a state-of-the-art, semi-autonomous DreamDrive driving platform and connected to smartphones (your phone essentially acts as a key and all-in-one control unit).
In short, the Lucid Air is real. It's the next big thing in the premium EV world.
Lucid Motors will sell many Lucid Air vehicles over the next few years, develop a strong brand for this first generation of luxury electric vehicles, and then use that brand to bring new vehicles to market for just as much demand in the years to come. It is a recipe for success that Tesla has developed and that Lucid Motors will follow with great success.
Wait for the confirmation
The only problem?
Lucid Motors does not match CCIV stock.
Right now, the price movement related to CCIV stocks - it has more than doubled in two weeks - strongly suggests that the market believes the Lucid Motors merger is complete.
It is not.
Sure, the deal can be closed. In that case, I'll start tapping the table about CCIV stocks.
Until then there is simply too much speculation about this SPAC. To that end, patience seems the way to go here.
Conclusion at CCIV Stock
Lucid Motors is a long-term winner with a 10x upside potential in the 2020s (to find out more about potential 10x investment opportunities, click here.)
However, CCIV stock is not yet representative of Lucid Motor's disruptive and promising business, and there is no guarantee that it will happen anytime soon.
So don't rush to this name on rumors. Wait for the confirmation. Then either forget about CCIV stock if the merger fails or buy CCIV stock if the merger is confirmed.
Either way, keep an eye on Lucid Motors and buy shares in the company as soon as it finally goes public.
At the time of this writing, Luke Lango held positions (neither directly nor indirectly) in the securities identified in this article.
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