For several weeks, rumors swirled that Churchill Capital IV (NYSE: CCIV) was preparing to merge with Lucid Motors. ET We now know that the value of CCIV stock is backed by the fundamental earnings power of Lucid Motors. I’m not exaggerating when I say: “Lucid Motors has it all.”. For example, don’t expect any Wall Street research to come forward until the merger closes. Consumers are responding to the unrivaled specs and unique post-luxury branding by pre-ordering the car in bulk. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. These advantages won’t disappear anytime soon. You can use this information to assess what multiple you think CCIV stock should have and adjust your valuation accordingly. Headquarters. After a 38% plunge, Lucid's CCIV merger values the revenue-free company at $57 billion. Bottom Line on CCIV Stock Lucid Motors is a long-term winner with 10X upside potential during the 2020s (to read more about potential 10X investment opportunities, click here.) Lucid is selling this dream car through a 100% direct sales strategy, which encompasses selling cars online (through a modern, simple, fully-customizable, and straightforward digital sales process) and through Lucid-branded stores that look like luxury fashion showrooms. But CCIV stock … LEAP is backed by 403 patents – over 80% of which are already issued — so Lucid Motors should be able to adequately defend its EV technology lead for the foreseeable future, especially when you consider this company has more talent and resources than anyone else in the space save Tesla. All rights reserved. 2021 InvestorPlace Media, LLC. But it’s not the best growth stock to buy today. This is because I suspect it is highly likely that Lucid will have a higher-than-average multiple. 1125 N. Charles St, Baltimore, MD 21201. Copyright © 2021 InvestorPlace Media, LLC. Lucid Motors already has an electric powertrain manufacturing plant in Casa Grande, about an hour south of Phoenix (where I live). 1 price of $30.63. quotes delayed at least 15 minutes, all others at least 20 minutes. Lucid’s first car – the Lucid Air Dream, which will debut in the second half of 2021 – is an amazing car. For the uninitiated, Lucid Motors is an electric vehicle company (EV) with a premium focus. Peaceful ambience … These are attributes consumers place a high value on today – and Lucid Motors knocks all of them out of the park. [LUCID MOTORS STOCK] If playback doesn't begin shortly, try restarting your device. Relative to Tesla, Lucid Motor’s management team stacks up equally (outside of Elon Musk, of course, which – admittedly – is a big difference). The table at the right shows the results of this revised valuation. So the Saudis are effectively selling stock (rather, getting diluted) at $10 per share (to the SPAC), and also buying stock at $15 per share (in the PIPE). This is the most impressive confluence of talent in the EV industry outside of Tesla – and it’s not even close. Electric vehicle design, development & building. The EV maker has the talent. 1, the stock was at $30.63, and I believe it was about 20% or so undervalued at that point. Saudi Arabia's Public Investment Fund. View which stocks have been most impacted by … Sustainable materials. Yet, at the current CCIV stock price, Lucid Motors is just a $60 billion company. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. All rights reserved. Lucid Motors is going public before it starts selling EVs A merger will value Lucid Motors at $11.75 billion and provide the startup with $4.4 billion in cash. Much like Tesla, Lucid Motors won’t stop at making a superstar luxury EV. One thing I really like about Lucid Motors — and by extension now, CCIV stock — is that this management team has vision. Beyond that, Lucid hopes to leverage its ultra-dense proprietary battery technology to make energy storage solutions, too – much as Tesla is doing right now with its Powerwall platform. The SPAC merger deal has to close as well. With the Lucid Motors Merger Confirmed, CCIV Stock Is Your 10X Opportunity, What to Know About the SSR Stocks Rule as GME Moves Wildly >>> READ MORE, Get Luke Lango’s No. That implies a fair price for CCIV stock of over $60. It is just not very tidy. For example, by using both the comp median and the Tesla multiple, the price averages to $46.84 per share. 2021 InvestorPlace Media, LLC. It is also building a second plant so that at full capacity it can produce 365,000 electric luxury sedans (called the Lucid Air) per year. Everything you need to know about the potential CCIV Stock / SPAC merger with Lucid Motors.Welcome to my FreeTrade Dividend Portfolio series! Lucid Motors represents one of the most innovative companies in the world today, with enormous long-term growth potential. Caliber Imaging & Diagnostics' stock was trading at $0.73 on March 11th, 2020 when Coronavirus (COVID-19) reached pandemic status according to the World Health Organization. Given the company’s long-term earnings growth potential, Lucid Motors is worth about $100 billion today. On the date of publication, Mark R. Hake holds a long position in Tesla (TSLA) stock. It has all the technology and self-driving bells-and-whistles. Discounting it back by 10% per year, my numbers say that CCIV stock is worth about $70 today. Those rumors were confirmed yesterday. 1 price of $30.63. All of these facts provide strong signal that CCIV stock is a big-time winner. Lucid Air is a mini-Tesla, with all the right ingredients to one day potentially rival Tesla not just for global EV market supremacy, but for global clean energy market supremacy, too. The company’s first product, the Lucid Air all-electric sedan, is not yet available but the company lists specifications to include a 400-mile single-charge range and autonomous capabilities. Nasdaq Copyright © For example, for 2024, the median EV-to-sales multiple is 4.1 times. Since there are 1,599 billion shares on a pro forma basis, the target price is only $28.21. Could CCIV stock soar to a valuation that makes Lucid Motors worth $700 billion? Lucid designed its car with this post-luxury vibe in mind. But Lucid Motors already has robust production capacity in place. Long-term, shares could soar to $400 — representing 10X upside potential from the CCIV stock price today. 1125 N. Charles St, Baltimore, MD 21201. Could CCIV stock soar to a valuation that makes Lucid Motors … 3 Big Stories to Catch Up On. It looks the part of luxury dream EV. Lucid Motors Funding. Of course, Lucid Motors has manifested its strong technology into a great first product. I decided to average the median number of 4.1 plus 70% of Tesla’s 10.7 times multiple. Tesla is a $700 billion company. Yet, at the current CCIV stock price, Lucid Motors is just a $60 billion company. Lucid Motors sets out to create a car that elevates the human experience and transcends the perceived limitations of space, performance, and intelligence. CCIV Stock Price and News: Churchill Capital Corp IV recovers as Lucid Motors CEO speaks on CNBC. The bottom line here is that I have shown that CCIV stock is worth somewhere between $37.02 and $46.84 per share. KNOW THIS! The SPAC saw its stock price surged nearly 40% on Monday amid the potential merger news. Welcome back to another CCIV (Churchill Capital V) and Lucid Motors video!! How Lucid Motors Stock Could Double Your Money . What Did the Stock Market Do Today? Lucid Motors. To that extent, the immediate, gut-reaction sell off in Lucid Motors stock makes sense. 2007. Notable Investors. Copyright © 2021 InvestorPlace Media, LLC. This is based on my calculations of its comp value, which I will describe in this article. And, perhaps most importantly, it features a best-in-class driving range of over 500 miles and industry-leading recharge time of 20 minutes for 300 miles. This makes the CCIV stock merger with Lucid Motors one of the largest SPAC (special purpose acquisition company) deals ever done. Tech forward. Its luxury sedan will likely move its valuation closer to Tesla’s value than the median of other electric vehicle stocks. That puts the stock on a forward EV-to-sales ratio of 4.5 times. In so doing, Lucid retains full control over the customer experience, and build and retain strong brand equity — much as Tesla has done with its direct sales model. For example, at $30.63, the pro forma market capitalization is now $49 billion. View Company. Here’s why. Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent. Like Tesla, the company is also based in California. This plunge in CCIV stock is a golden buying opportunity, for three big reasons: So, forget these “buy the rumor, sell the news” dynamics. With Churchill stock trading at $52, the implied, updated value of Lucid could be more than $40 billion. Operationally, Lucid Motors is where Tesla was 10 years ago — and has all the right ingredients and necessary firepower to turn into a major force in the global EV market soon. Click here to see how he does it. Mar 10, 2021 8:30AM EST. ET First Published: Feb. 22, 2021 at 7:27 p.m. The company is positioning itself as a so-called “post-luxury” brand that focuses on elegance and modernity over the traditional legacy focus-points of opulence and indulgence. This is a fairly large deal. Lucid Motors is a developer and provider of luxury electric vehicles based out at Menlo Park, California. Assuming a merger goes through, with say, $1 billion in cash provided to Lucid Motors, could result in a $25 to $30 billion valuation. This represents a potential gain of 53%. On those rumors, CCIV stock soared rapidly. Churchill Capital IV (NYSE:CCIV) finally announced a definitive merger with Arizona-based electric vehicle (EV) company Lucid Motors on Feb. 22. The company is engaged in the designing and manufacturing of electric and battery-operated cars. Of course, for many pre-production EV companies, mass production is a huge execution risk.