CCIV stock tanks 27% after Lucid Motors confirms SPAC deal
Lucid Motors and Churchill Capital IV (CCIV) have finally confirmed a merger deal to take the California based EV company public. Shares of Churchill Capital …
Lucid Motors and Churchill Capital confirm SPAC deal: CCIV share tank to view your mail Finance Watchlists My Portfolio Screeners Premium Markets News Personal Finance Videos Industries Tech Contact Us MoreMore
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Lucid Motors and blank check company Churchill Capital IV () confirmed a merger deal to take the California-based EV company public. Shares of Churchill Capital are down around 30% in pre-market.
The transaction values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE (private investment in public equity) offer price of $15.00 per share and will provide Lucid, with approximately $4.4 billion in cash (assuming no existing CCIV shares are redeemed for cash at closing).
The deal has a transaction equity value of $11.75 billion which includes a cash contribution from CCIV of $2.1 billion, a PIPE investment of $2.5 billion with a lock-up provision for holders.
Speculation over a deal has been circulating for more than a month. In mid-February shares of Churchill Capital IV, led by investment banker Michael Klein, of a nearing agreement. On Monday the stock gained double digit percentages after an agreement could come as soon as Tuesday.
The electric vehicle maker is backed by Saudi Arabia’s sovereign wealth fund. A deal with Churchill Capital IV is one of highest profile EV SPAC agreements since Nikola () and Fisker () debuted publicly last year.
Lucid Motors has been closely watched since it is competing in the electric luxury sedan space. The company's CEO and CTO Peter Rawlinson was the chief engineer at Tesla () for the model S prior to joining Lucid Motors in 2013.
Lucid Motors placed its first US production factory in Casa Grande, Arizona. The company aims to meet production goals for of its most expensive vehicle, the Air Dream Edition this year.
“I think it's really important that we start at a high-end position as a true luxury brand. I'm a great believer that the first product defines the brand in way Tesla model S defined Tesla as a brand,” Rawlinson
In an email to Yahoo Finance on Monday prior to a deal announcement, Lucid's official statement read “Lucid Motors has always been clear about its intent to go public at some point in order to accelerate the adoption and global availability of Lucid’s exclusive electric vehicle and sustainability technologies…Currently, our focus continues to be on bringing Lucid Air to production in Spring of this year, with the strong support of key investors and our partners at the Public Investment Fund.”
Lucid also confirmed it , just blocks away from Tesla's showroom.
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Churchill Capital Corp IV57.37+4.43+8.37%Churchill Capital Corp IV64.31+5.44+9.24%China Coal Energy Company Limited7.57+1.32+21.12%Fisker Inc.18.12+0.13+0.72%MBH Corporation PLC0.4830+0.0170+3.65%TRENDING 1. 2. 3. 4. 5.
Lucid, run by an ex-Tesla engineer, is the latest firm to tap the initial public offering market, with investors rushing into the EV sector, spurred by the rise of Tesla Inc and with emissions regulations toughening in Europe and elsewhere. The deal, which has a transaction equity value of $11.75 billion, includes a $2.1 billion cash contribution from CCIV and a PIPE (private investment in public equity) investment of 2.5 billion from investors. Reuters was first to report last week that Michael Klein had launched a financing effort to back the Lucid deal.
The electric vehicle startup Lucid Motors is going public via merger with the special purpose acquisition company Churchill Capital Corp IV at a valuation of $24 billion, the companies said Monday.Why it matters: The high value of the transaction with the blank-check firm headed by former Citi exec Michael Klein underscores how Lucid could be well positioned in the growing market.Get market news worthy of your time with Axios Markets. Subscribe for free.The Silicon Valley-based company, whose CEO Peter Rawlinson is a Tesla alum, is beginning deliveries this year of its Lucid Air sedan.The company says the luxury vehicle will have over 500 miles of range, the highest in the industry. It's also backed by Saudi Arabia's huge sovereign wealth fund.Were it stands: Investors in the deal in include the Saudi fund as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, and others, the announcement states.Via Bloomberg, it's the “largest injection of capital into Lucid since Saudi Arabia’s Public Investment Fund invested more than $1 billion in 2018.”CCIV stock was trading after the announcement at $42 per share, implying a valuation for Lucid of $67 billionWhat's next: The announcement said the deal will provide Lucid with $4.4 billion in proceeds that will be used to expand Lucid's manufacturing plant in Arizona, which Lucid plans to scale up in phases.Beyond the phased-in growth of Lucid Air production, the company plans to bring an SUV into production in 2023.”Scheduled to expand over three phases in the coming years, our Arizona facility is designed to be capable of producing approximately 365,000 units per year at scale,” the announcement states.The proceeds will also help Lucid implement plans to become a tech supplier for other auto manufacturers, and enter the stationary battery storage market.More from Axios: Sign up to get the latest market trends with Axios Markets. Subscribe for free
Jim Cramer said Monday it is not too late “to make a big bet” on reopening stocks. What Happened: “You’re no longer early with these names, but that doesn’t mean you’re late either,” the CNBC “Mad Money” host said. Cramer’s picks include Walt Disney Co (NYSE: DIS), Marriott International Inc (NASDAQ: MAR), Wynn Resorts, Limited (NASDAQ: WYNN), Southwest Airlines Co (NYSE: LUV), and Royal Caribbean Cruises Ltd (NYSE: RCL). The former hedge fund manager also foresees a rise in business for credit card companies such as Visa Inc (NYSE: V), Mastercard Inc (NYSE: MA), and American Express Company (NYSE: AXP). Other favorites include Estee Lauder Companies Inc (NYSE: EL), Caterpillar Inc (NYSE: CAT), Nucor Corporation (NYSE: NUE), and Simon Property Group Inc (NYSE: SPG). “We all know the day will come, the day when we can see the light at the end of the tunnel. We knew the reopening stocks would jump ahead of time,” said Cramer. Why It Matters: The CNBC host advocated that investors latch on to the uptrend in economic recovery stocks but also advised that they should maintain exposure to growth stocks. “It is not too late to make a big bet on the reopening stocks, but remember to sock away a couple of the better growth names on the way down, too.” Cramer’s travel sector picks all ended the trading day in green on Monday. Royal Caribbean closed 9.33% higher in the regular session the same day to $86.23. The bounce in the shares came despite the cruise liner reporting a net loss of $5.8 billion in 2020 as against the income of $1.9 billion a year prior. See more from BenzingaClick here for options trades from BenzingaFacebook Re-Friends Australia As Government Amends News-Revenue-Sharing BillBitcoin Might Be Tanking But These Ethereum Killers Are Posting Major Gains Today© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Shares in Tesla were set to plunge into the red for the year on Tuesday, hit by a broad selloff of high-flying technology stocks and the fall of bitcoin, in which the electric carmaker recently invested $1.5 billion. The firm led by Elon Musk has had a stellar ride since 2020, which it began at about $85 per share, before reaching the $900 mark on January 25. Currently trading at about $657 in pre market transactions, the stock has lost 27% from its peak, which is above the 20% level which technically defines a bear market.
(Bloomberg) — European stocks dropped with U.S. equity futures on Tuesday as the jump in bond yields and commodity prices continued to hammer technology shares.The Stoxx 600 Index dropped by the most in almost a month, with the tech sector down more than 3%. Firms that had benefited from pandemic-induced lockdowns were among the biggest laggards after the U.K. outlined plans to reopen its economy. In the U.S., Nasdaq futures slumped more than 1% a day after the tech-heavy gauge posted its longest losing streak in four months.Budding inflation bets spurred by the global economic recovery have added to scrutiny on stocks that have led the rally from the depths of the pandemic a year ago. Treasuries steadied on Tuesday after the gap between 5- and 30-year yields touched the highest level in more than six years. Copper extended gains, while WTI crude rose toward $63 a barrel.One concern among investors is that broad benchmarks have already priced in much of the prospective global recovery spurred by vaccines and U.S. stimulus. Another is that central banks may eventually start reconsidering emergency programs that have supported global markets.“The timing of a pullback is even more uncertain than we previously understood,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. “One has the potential to start at any time, but may not emerge until the second half given a lack of near-term catalysts. We don’t view the recent rise in 10-year yields as a reason to turn negative on U.S. equities for the year.”Traders are waiting to hear from Federal Reserve Chair Jerome Powell when he testifies to the Senate Banking Committee on Tuesday and the House Financial Services panel the following day. He’s expected to play down the risk of inflation despite the size of President Joe Biden’s $1.9 trillion coronavirus relief proposal.Elsewhere, Bitcoin retreated below $50,000 after a bout of volatility highlighted lingering doubts about the durability of the token’s rally.Some key events to watch this week:Fed Chair Jerome Powell delivers the central bank’s semi-annual monetary policy report to the Senate Banking Committee on Tuesday.EIA crude oil inventory report is out Wednesday.Finance ministers and central bankers from the Group of 20 will meet virtually Friday. U.S. Treasury Secretary Janet Yellen will be among the attendees.These are some of the main moves in markets:StocksFutures on the S&P 500 Index declined 0.6% as of 10:19 a.m. London time.The Stoxx Europe 600 Index dipped 1.2%.The MSCI Asia Pacific Index advanced 0.1%.The MSCI Emerging Market Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.2151.The British pound advanced 0.2% to $1.4086.The onshore yuan was little changed at 6.462 per dollar.The Japanese yen weakened 0.2% to 105.26 per dollar.BondsThe yield on 10-year Treasuries gained less than one basis point to 1.37%.The yield on two-year Treasuries dipped less than one basis point to 0.11%.Germany’s 10-year yield advanced three basis points to -0.31%.Britain’s 10-year yield jumped four basis points to 0.721%.CommoditiesWest Texas Intermediate crude increased 0.7% to $62.14 a barrel.Brent crude gained 0.8% to $65.74 a barrel.Gold weakened 0.2% to $1,806.55 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Three Rio Tinto executives forced to leave the company after the destruction of sacred rock shelters at Juukan Gorge in Western Australia all closed off the year with substantial payouts, Rio's annual report released on Monday showed. Chief Executive Jean-Sébastien Jacques, who stepped down from his role at the end of 2020, received total remuneration of 13.3 million pounds ($18.6 million) under Australian accounting rules, up from 7.1 million pounds a year earlier. Despite the loss of about 2.7 million pounds in awards following a board review into the blast, the sum, which includes the value of share awards that have not yet vested, was boosted by Rio Tinto's strong share price performance.
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Tesla Inc (NASDAQ: TSLA) CEO Elon Musk is no longer the world’s richest person, according to Bloomberg Billionaires Index. What Happened: Musk was replaced by Amazon.com, Inc (NASDAQ: AMZN) CEO Jeff Bezos as the richest person on the list after Tesla shares fell 8.6% on Monday eroding $15.2 billion from his net wealth, according to Bloomberg. A tweet by Musk over the weekend which touched on the high valuation of Bitcoin (BTC) and Ethereum (ETH) furthered the entrepreneur’s decline in wealth. That said, BTC & ETH do seem high lol — Elon Musk (@elonmusk) February 20, 2021 Musk falls to second place on the Bloomberg Billionaire’s Index with a net worth of $183.4 billion, while Bezos has a net worth of $186.3 billion. Why It Matters: This month, Tesla invested .5 billion in Bitcoin and said it expects to accept the cryptocurrency as a means of payment in the near future. Tesla’s $1.5 billion BTC investment is worth nearly .5 billion, a gain of almost 70%, at the press-time BTC price of $52,040.21. Market strategist Peter Schiff — a noted gold bug and a Bitcoin critic— commented on the decline in the prices of Tesla shares post the company’s BTC purchase. Two weeks after @elonmusk announced that he spent $1.5 billion of shareholder money buying Bitcoin, #Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and 16% since disclosing the #Bitcoin buy. Not an example other CEOs will likely follow! — Peter Schiff (@PeterSchiff) February 22, 2021 Musk and Bezos have been trading places as the world’s richest persons since January 2021. Price Action: Tesla shares closed nearly 8.5% lower at $714.50 on Monday and fell almost 0.5% in the after-hours session. On the same day, Amazon shares closed 2.13% lower at $3,180.74. For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España. Photo courtesy: Forbes via Wikimedia See more from BenzingaClick here for options trades from BenzingaAnother Elon Musk Dogecoin Tweet Sends Speculators AflutterPalantir Replaces GameStop As WallStreetBets' Top Interest© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) — German businesses are increasingly optimistic that economic momentum will pick up this year, despite extended lockdowns to combat new variants of the virus and a slow start to vaccinations.The Ifo Institute’s gauge of expectations for the next six months rose to 94.2 in February from 91.5 in January, beating estimates in a Bloomberg survey. The business climate index also gained, and companies were even slightly more upbeat about their present situation.The German economy narrowly averted a contraction in the fourth quarter but with shops and restaurants still closed it’s set to shrink at the start of 2021.Chancellor Angela Merkel’s government has warned that the spread of the coronavirus needs to slow further before Germany can consider loosening restrictions.Read more: Germany Damps Hopes for Easing Curbs as Contagion Rates RiseThe manufacturing sector is the key source of resilience. Bundesbank President Jens Weidmann told newspaper Augsburger Allgemeine in an interview earlier this month that robust industry was one reason why the first-quarter setback shouldn’t be too big.”It’s really a divided economy,” Ifo President Clemens Fuest said in an interview with Bloomberg Television, with manufacturing strong and retail a source of weakness. The slow vaccine rollout “will hold back the economy” and “more needs to be done.”Even so, signs are mounting that manufacturers are now being hamstrung by supply bottlenecks, including a shortage of shipping containers for sea freight and semiconductors.Delivery delays rose to near record levels in February, pushing input costs to the highest in nearly a decade, according to purchasing managers survey data.Automaker Daimler AG said that it’ll recover production lost due to chips being in short supply over the course of the year, but cautioned that the situation remains volatile.(Updates with Fuest comment in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) — Shares of the blank-check firm combining with electric-vehicle startup Lucid Motors Inc. plunged in early trading after confirming the biggest SPAC merger yet to cash in on investor enthusiasm for battery-powered cars.Churchill Capital Corp IV, the special-purpose acquisition company run by financier Michael Klein, fell as much as 42% in premarket trading after confirming its merger with Lucid. The deal will generate about $4.4 billion in cash for the 14-year-old carmaker, which announced production of its debut model will be delayed to the second half of this year.Lucid has shied away from comparisons to market leader Tesla Inc., but the public listing at a pro-forma equity value of $24 billion positions it to compete for a slice of what’s expected to become a rapidly growing market for EVs. It plans to use the newly acquired funds to bring vehicles to market and expand its factory in Casa Grande, Arizona.Churchill Capital shares surged 472% through Monday’s close since Bloomberg News first reported on Jan. 11 that the firm was in talks with Lucid.The reverse-merger represents the biggest capital injection for Lucid since Saudi Arabia’s Public Investment Fund invested more than $1 billion in 2018. The agreement included a $2.5 billion private placement in public equity, or PIPE, the largest of its kind on record for a SPAC deal. It was led by PIF as well as BlackRock, Fidelity Management, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital, according to a joint statement from Lucid and Churchill Capital.The placement sold at $15 a share — a 50% premium to Churchill’s net asset value — which translates into about $24 billion in pro-forma equity value, the companies said. The combined company has a transaction equity value of $11.8 billion.“I see the SPAC as just a tool, another lever to pull on, where we can accelerate our trajectory,” Lucid Chief Executive Officer Peter Rawlinson said in an interview. “This is a technology race. Tesla gets this. It’s why they are so valuable and Lucid also has the technology.”The SPAC is the largest run by Klein, a former Citigroup Inc. investment banker who has played a prominent role in guiding the Kingdom of Saudi Arabia’s investments, serving as an adviser to the PIF. Among other deals, he advised on the Saudi Aramco initial public offering.The Lucid transaction is expected to close in the second quarter.Production TargetsLucid had previously said deliveries of its debut EV, a luxury sedan called the Air, would begin in the second quarter. The company has now decided not to commit to a start date for the $169,000 car as a result of talks with Churchill Capital, Rawlinson said. It plans to eventually produce more affordable versions of the Air and a battery-electric SUV.The Casa Grande factory currently has installed production capacity for 34,000 units annually, based on three work shifts, Rawlinson said. Lucid hopes to ramp that up to capacity for 85,000 units a year as soon as 2023, after additional investments are made.Lucid forecasts deliveries of 20,000 vehicles in 2022, generating sales of $2.2 billion. It sees revenue rising to $5.5 billion and $9.9 billion in 2023 and 2024, respectively, according to a presentation made to investors posted on its website. The company foresees positive earnings before interest, taxes, depreciation and amortization of $592 million in 2024.Beyond its manufacturing capacity, Lucid expects to invest heavily in new products and will grow headcount to 5,000 over the next year, Rawlinson said.Lucid’s debut vehicle will challenge Tesla in the still-niche market for premium EV sedans. The Air model has a range of 517 miles on a single charge, based on Environmental Protection Agency estimates. It can reach zero-to-60 miles per hour in 2.5 seconds and has access to Electrify America’s network of DC fast chargers. That’s comparable with the Model S Plaid +, which has a maximum range of around 520 miles, a zero-to-60 time of less than 2 seconds and access to Tesla’s nationwide network of fast chargers.Ire of MuskThe market capitalization of Lucid is just a fraction of Tesla’s roughly $686 billion valuation, but not bad for a luxury electric-vehicle maker that has yet to deliver its first car. Rawlinson has stated repeatedly that Lucid is not a direct competitor to Tesla because his company’s price point is beyond the mass-market buyers Elon Musk aspires to reach.But there are signs of a budding rivalry.The Newark, California-based company — the headquarters of which are just 16 miles from Tesla’s in Palo Alto — says its first EV will go the distance against the longest-range Model S sedan. Lucid’s new factory arose out of the Arizona desert as fast as Tesla’s in China. And growing interest in the startup and its CEO has drawn the ire of none other than Musk.Rawlinson and Musk have a complicated history. The Lucid CEO was chief engineer on Tesla’s flagship Model S, but Musk has downplayed his role in its development and also accused him in a tweet of leaving the company “in the lurch just as things got tough” in 2012.Longer-term, Lucid is also working on energy storage solutions similar to Tesla’s Powerwall. The company wants to use the same battery technology in its cars to develop batteries to power homes and utility-scale devices and already has working prototypes, Rawlinson said.(Updates with share move in the second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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