Churchill Capital IV's (CCIV) stock rallied as much as 13% Friday amid new signs the company is seeking to acquire EV maker Lucid Motors from an investing consortium led by VC firm Venrock Associates.
According to a Bloomberg terminal news update, CCIV began talks with Venrock Associates and a group of Lucid investors on Thursday, but the financial terms of the potential deal haven't yet been disclosed.
Venrock Associates is one of the oldest investors in Lucid. The VC firm first bought into the company back in 2009 in a $7 million Series B financing round when Lucid was still a small battery manufacturer called Atieva.
Now Venrock is looking to turn that relatively small investment into a much larger gain by selling its holdings to Michael Klein's SPAC Churchill Capital IV.
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Rumors of a potential Lucid Motors sale or merger with CCIV have been circulating for some time.
On Jan 11, Bloomberg first reported Lucid Motors was in talks to go public via a merger with the special purpose acquisition company. The news caused a 50% rise in CCIV's share price in just two days. Since then, the stock has appreciated over 240% as investors continue to value the SPAC as if a deal with Lucid is in the works.
Now investors may be getting what they're looking for, as the most recent news is yet another sign that CCIV and Lucid will eventually merge.
Lucid Motors first gained attention in the media with the release of its luxury EV, the Lucid Air. Even the base model of the electric vehicle will offer a range of 406 miles and a 0-60 of 2.5 seconds. The company says it will start at $69,900 with the incorporation of federal tax credits as well.
Lucid also earned headlines recently after opening a production facility in Casa Grande, Arizona, where it plans on eventually manufacturing 400,000 vehicles per year.
Although for now, there will be limited production of the company's flagship model, the Air Dream Edition, which starts at $169,000 and will offer 1,080 horsepower and a range of 517 miles.
Lucid plans on producing its first saleable cars out of the Casa Grande factory this spring.
Churchill Capital IV traded up about 13%, at $35.60 per share, as of 9:56AM E.T. on Friday.