How Churchill Capital IV's Soaring Stock Led to a Better Deal for Early Investors
Prior to confirming its merger with Lucid Motors, shares of special-purpose acquisition company (SPAC) Churchill Capital IV (NYSE: CCIV) had soared as high as nearly $65 on the rampant speculation that had persisted for over a month. The situation was clearly getting overheated, and the meteoric rise undoubtedly complicated matters quite a bit.
The subsequent plunge following the official announcement wasn't all that surprising after shares soared 500% on rumors alone. It was a classic "sell the news" event, and speculative investors who bought near the top are nursing heavy losses. However, the surge did have a silver lining: It allowed Churchill Capital to negotiate a better deal for early investors.
Lucid Air ships later this year. Image source: Lucid Motors.
Source Fool.com
