- Churchill Capital IV jumped 13% after a Bloomberg terminal update suggested that a consortium of investors led by VC firm Venrock Associates were looking to sell Lucid Motors.
- Lucid and Churchill Capital IV have been rumored to be in merger talks since January 11.
- The news comes as Lucid plans on releasing its first production vehicle this spring.
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Churchill Capital IV’s (CCIV) stock rallied as much as 13% Friday amid new signs the company may be seeking to acquire EV maker Lucid Motors from an investing consortium led by VC firm Venrock Associates.
Traders reacted to a Bloomberg terminal note suggesting that CCIV was in talks with Venrock Associates and a group of Lucid investors. No new talks have been announced or reported otherwise.
Venrock Associates is one of the oldest investors in Lucid. The VC firm first bought into the company back in 2009 in a $7 million Series B financing round when Lucid was still a small battery manufacturer called Atieva.
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Rumors of a potential Lucid Motors sale or merger with CCIV have been circulating for some time.
On Jan 11, Bloomberg first reported Lucid Motors was in talks to go public via a merger with the special purpose acquisition company. The news caused a 50% rise in CCIV’s share price in just two days. Since then, the stock has appreciated over 240% as investors continue to value the SPAC as if a deal with Lucid is in the works.
Lucid Motors first gained attention in the media with the release of its luxury EV, the Lucid Air. Even the base model of the electric vehicle will offer a range of 406 miles and a 0-60 of 2.5 seconds. The company says it will start at $69,900 with the incorporation of federal tax credits as well.
Lucid also earned headlines recently after opening a production facility in Casa Grande, Arizona, where it plans on eventually manufacturing 400,000 vehicles per year.
Although for now, there will be limited production of the company’s flagship model, the Air Dream Edition, which starts at $169,000 and will offer 1,080 horsepower and a range of 517 miles.
Lucid plans on producing its first saleable cars out of the Casa Grande factory this spring.
Churchill Capital IV traded up about 13%, at $35.60 per share, as of 9:56AM E.T. on Friday.