Please ensure Javascript is enabled for purposes of website accessibility

Why Churchill Capital IV Stock Popped Today

By Evan Niu, CFA - Apr 26, 2021 at 12:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Speculation continues to swirl around a potential partnership with Apple.

What happened

Shares of Churchill Capital IV (CCIV) have popped today, up by 12% as of 12 p.m. EST, on renewed speculation that Lucid Motors may partner with Apple (AAPL 1.89%). Churchill Capital IV is the special purpose acquisition company (SPAC) merging with Lucid Motors to take the nascent electric vehicle (EV) maker public.

So what

Hopes that Lucid would partner with Apple have persisted for a couple of months, due in part to the fact that longtime Apple designer Jony Ive sits on Churchill Capital's operating team. Additionally, Apple has been searching for a manufacturing partner as part of its efforts to enter the auto industry with its oft-rumored Apple Car. Apple has been developing autonomous driving software for several years, while Lucid's advanced driver-assistance system (ADAS), known as DreamDrive, will be capable only of Level 2 functionality initially.

White Lucid Air in a driveway

Image source: Lucid Motors.

The renewed speculation comes following an interview with The Guardian on April 3 in which CEO Peter Rawlinson declined to comment on whether Lucid had been approached by Apple. Investors have noted that the New York Stock Exchange requires that rumors be outright denied if they are false or inaccurate, so some investors are interpreting the lack of a denial as potential evidence of a partnership.

Now what

It's also worth noting that short-sellers have been pushing down Churchill Capital IV stock over the past month, with data from S3 Partners showing a massive increase in short interest. That increases the possibility of a short squeeze, in which shorts scramble to cover the bearish bets by buying shares.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Churchill Capital Corp IV Stock Quote
Churchill Capital Corp IV
Apple Inc. Stock Quote
Apple Inc.
$141.56 (1.89%) $2.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.