Shareholders in Churchill Capital IV (NYSE:CCIV) and CCIV stock have had a relatively strong month. Shares of this SPAC scheduled to bring Lucid Motors public have been on an upward trajectory of late. A variety of factors are at play with respect to this rise.
It appears sentiment in the SPAC space is growing stronger in recent weeks. Activity at a number of other high-profile SPACs including Bill Ackman’s Pershing Square Tontine Holdings (NYSE:PSTH) has picked up. Additionally, the rather significant news of fellow pre-revenue EV company Rivian pursuing a major IPO of as much as $50 billion to $70 billion has brought Lucid’s valuation into focus. This time, investors appear to be wondering whether CCIV stock is too cheap to ignore at these levels.
Additionally, higher-than-average short interest of more than 20% for CCIV stock has placed Churchill Capital in the crosshairs of retail traders today. For those living under a rock, short-squeeze mania is once again back in the markets. Any stock with a short volume ratio around 20% or higher is surging on this news.
However, today, the company has another potential catalyst investors are pricing in. Let’s take a look at what this Tesla (NASDAQ:TSLA) news has to do with Churchill Capital today.
Cancellation of Plaid+ Driving Interest in CCIV Stock
The notable move by Tesla CEO Elon Musk to announce, seemingly on a whim, the cancellation of its upcoming Plaid+ model this weekend has sent shockwaves through the EV sector.
For Tesla investors, the news hasn’t been good. Shares of TSLA stock gained just 1% today on a relatively strong day in the EV sector.
However, most hypergrowth competitors of Tesla are surging on this news. In the case of Lucid Motors and Churchill, this company is taking advantage of a cocktail of catalysts to surge approximately 10% on heavy volume.
Lucid’s appeal is ultimately to investors betting this company can gain market share in the luxury EV space. With Tesla owning such a substantial foothold in this market, this news is positive for investors in CCIV stock.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.