What happened
Shares of Churchill Capital IV (CCIV), the special purpose acquisition company (SPAC) that soon hopes to merge with Lucid Motors, gave up early gains Thursday. Shares were down 3.4% as of 2:30 p.m. EDT Thursday after starting the day slightly higher.
So what
Today's drop still doesn't wipe out the week's gains for the SPAC. Shares have been marching higher since an announcement late last week that Churchill Capital has set a date for shareholders to vote on the previously announced merger with electric vehicle (EV) start-up Lucid Motors. The special meeting of shareholders for the merger will occur on July 22, 2021. The public debut of Lucid Motors has been highly anticipated by investors as many see it as a challenge to EV leader Tesla (TSLA 0.42%).
New Lucid Motors studio in the meatpacking district of Manhattan. Image source: Lucid Motors.
Now what
Along with anticipation of the merger vote, Lucid gave investors more to like yesterday when it released further details of the opening of its new Lucid studio in Manhattan. The studio in the meatpacking district is the first location in the northeastern U.S. and Lucid's eighth studio opening in the past year. The Manhattan location officially opened its doors late last week.
Lucid plans to open another 11 studios throughout North America by the end of 2021. That coincides with the start of production of the company's luxury Air Dream Edition sedan, which it expects to begin producing and delivering to customers later in 2021.
The company has been seeing growing demand and reservations, which has helped drive shares higher recently. Today's drop in share price seems to be a bit of a breather after the double-digit run over the past week.
