It is time! CCIV and Lucid Motors. This week on SPAC of the week!

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Hey everyone I am Mr. Successfully Unemployed and with the deal just about to be announced, I bring you the SPAC merger of 2021 thus far, CCIV and Lucid Motors. News about a potential merger has been talked about for months now. This might be one of the worst kept secrets on Wall St!

For background, Lucid Motors is an EV company with literally no cars on the road. However, its Lucid Air is scheduled to have a release date of Spring of 2021 but I think it’ll be closer to the end of the year. It will start at about $77,400, which is pretty much on par with its biggest competitor, Tesla’s Model S. It’ll have more expensive models just like the Model S topping out at about $170k. I mean it is a beautiful car compared to Tesla's Model S which has only seen minor updates since it was released in 2012. The guy who is in charge of Lucid, Peter Rawlinson, was previously Tesla’s chief engineer on the Model S. So, I think he’ll deliver on the more than 500 miles per charge and under 10-second quarter-mile runs which they have been proclaiming.

Churchill Capital IV, CCIV, headed by Michael Klein, who is a former banker at Citi, raised more than $2 billion during their IPO in 2020 and has been in talks to raise at least another $1 - $1.5 billion. The stock debuted at $10 apiece, which is customary for SPACs, but is currently sitting at about $52.

My take on this…buy buy buy. Don’t listen to me. I am not your financial advisor. Past performance is not indicative of future returns. However, if it was me. Seeing and knowing what is about to occur, I would jump in on this SPAC. Word is that the deal will be announced this week, as early as Tuesday. I can see a lot of price action on Monday, as people try and lock into position or people will be taking profits as it has already gone up 5X. The deal is expected to be priced at around $12 - $15 billion. Which is a lot for a company that is not profitable and hasn’t even released a product. However, with Tesla being valued at over $700 billion, NIO being valued at about $85 billion, the potential upside for this SPAC is at least 5 – 7X. Obviously, not based on fundamentals. This is a meme SPAC and this deal will be announced very very soon. The 52-week high is about $65 and I can see it heading at least into the $70 range. With all the hype of both the SPAC and Lucid, the management teams behind both as well, compound that with the potential multiples for this EV company. I am giving it the rare 10/10 for it to a homerun play.

So, there you have it, CCIV and Lucid Motors. But let me know what you think. As before, I am not your financial advisor and past performance is not indicative of future returns. Do your own homework and look at YouTube videos like this one to learn more about SPACs. Don’t forget to like and subscribe so you’ll catch my weekly SPAC and if you have any comments, go at it. Till next week, peace!

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