Leon Müller from the investor magazine “Der Aktionär” takes a close look at Churchill Capital IV Corp (ISIN: US1714391026, WKN: A2QAMY, ticker symbol: CH20, NYSE ticker symbol: CCIV) in a current stock analysis.
This start was really unsuccessful: The announcement of the merger of Lucid Motors with the Special Purpose Acquisition Company – SPAC for short – Churchill Capital IV caused disillusionment among investors on Wall Street. The price of the listed coat collapses by over 40 percent. What happened
The shareholders of SPAC Churchill Capital IV had longed for it – now the message is there: The electric car developer Lucid Motors, like various competitors, is taking an abbreviation on the stock exchange and is merging with SPAC. It achieved an unusually high valuation of $ 24 billion. At the same time, the company secured new financing in the amount of around $ 4.4 billion. Lucid has been majority owned by Saudi Arabia’s state finance company since a financial bottleneck in 2018.
The company plans to start production of its first model, Lucid Air, this year, which will compete with Tesla’s Model S and luxury-class cars from BMW, Mercedes and Audi. The price ranges from 70,000 to 160,000 dollars, depending on the version. For the coming year, Lucid is aiming for sales of 20,000 vehicles, and in 2023 a large SUV will be added, which will be built on the same technical platform. By 2026, the company aims to sell 250,000 vehicles annually and generate around $ 23 billion in sales. The plant in the US state of Arizona is designed to produce 365,000 vehicles per year.
Lucid boss Peter Rawlinson once played a central role in the development of the Model S at Tesla. He will remain at the top even after going public. Lucid’s management team includes several former Tesla managers such as production expert Peter Hochholdinger, who once moved from Audi to Elon Musk’s company.
In the past few months, several developers of electric cars – including Canoo, Fisker, Lordstown Motors and Faraday Future – have chosen to merge with specially established companies – so-called SPACs – instead of a classic share placement for their IPOs.
The disappointment of market participants about the valuation of Lucid Motors not only brings the Churchill Capital share under pressure, but also the E-Mobility Newcomer Index recently initiated by the “shareholder”. He noted on Tuesday afternoon at the starting level. The disillusionment with the evaluation should soon be followed by the realization that with Lucid Motors a well-financed Tesla challenger is in the starting blocks. The first Lucid Air vehicles are to be produced in the second half of the year. Therefore: Do not overestimate today’s reaction.
Churchill’s course had previously run hot. The now more realistic valuation offers investors who have not yet invested the opportunity to invest comparatively cheaply, says Leon Müller of “Der Aktionär”. (Analysis from 02/23/2021)
With material from dpa-AFX
Please also note the information on the disclosure obligation in the event of conflicts of interest within the meaning of Directive 2014/57 / EU and corresponding EU regulations for the aforementioned analyst firm under the following link.
Note on conflicts of interest: The price of the financial instruments is derived from an index as an underlying. Börsenmedien AG developed this index and holds the rights to it. Börsenmedien AG has concluded a license agreement with Morgan Stanley as the issuer of the financial instrument, according to which Börsenmedien AG grants Morgan Stanley a license to use the index. In this respect, Börsenmedien AG receives remuneration from Morgan Stanley.
Churchill Capital stock exchanges:
Tradegate share price Churchill Capital share:
31,88 EUR -32,63% (23.02.2021, 16:41)
NYSE share price Churchill Capital share:
38,09 EUR -33,61% (23.02.2021, 16:26)
ISIN Churchill Capital-Aktie:
WKN Churchill Capital Promotion:
Ticker-Symbol Churchill Capital-Aktie:
NYSE Ticker-Symbol Churchill Capital -Aktie:
Short profile Churchill Capital IV Corp:
Churchill Capital (ISIN: US1714391026, WKN: A2QAMY, ticker symbol: CH20, NYSE ticker symbol: CCIV) is a blank check company. The company is established for the purpose of merging, exchanging, acquiring assets, acquiring shares, reorganization or a similar business combination with one or more companies. The company is not in business and has no revenue. (02/23/2021 / ac / a / n)
Disclosure of possible conflicts of interest:
You can view possible conflicts of interest on the site of the creator / source of the analysis.