Churchill Capital IV Stock Plummets After Merger Confirmed With Lucid Motors

New Electric Car From Lucid Motors

Amit Chowdhry

New Electric Car From Lucid Motors

Micheal Brinker, Writer

     The stock Churchill Capital IV (CCIV) has been rumored over months to be soon merging with Lucid Motors, a new, hyped-up electric car company. On the night of February 23, 2021, both companies had confirmed a merge, following a 35% drop in pre-market trading and a 54% drop within the week.

A majority of the media has been basing their trading on “buying the rumor, sell the news” and so it occurred. CCIV has jumped over 215% within the past three months due to the rumor of the merger, but why has the news slashed the price? Many traders were emphasizing to not be greedy and sell, so they took their profits while others held.

Recent Stock Price throughout the week
(Robinhood)

Another reason CCIV and many other corporations tanked were the rising inflation rates. The market on Thursday and Friday were not pretty scenes, to say the least. Most companies did, in reality, need a correction, due to immensely rising rates over the past few months.

With the way the recent few months have been with trading, most can acknowledge that the stock market activity will never b

e the same. There can be companies with no fundamentals that are “pumped and dumped”. This was shown with GME (Gamestop) and AMC (AMC Entertainment). A Reddit group called WallStreetBets organized a push for both companies. Hedge funds were shorting both of these stocks and the normal people did not want them to win. This caused the price of a single stock in these companies to rise over 350%.

    All in all, once everything goes back to normal with the market, CCIV is not a stock traders will want to miss. With being Teslas’ biggest competitor, it comes with great potential for the company. There is extreme funding behind Lucid Motors making it great for the electric car industry.