Shares of SPAC for electric car company Lucid plummet another 20% after merger announcement

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Shares were down as much as 19.6% during midday trading, adding to a tumultuous week for the special purpose acquisition company, also known as a SPAC,

Shares of Churchill Capital IV continued to plummet for a second consecutive day after announcing a deal Monday night to bring EV firm Lucid public through a reverse merger.Exterior of the Lucid Air sedan, which debuted Sept. 9, 2020 as the company's first production vehicle.continued to plummet for a second consecutive day Wednesday after announcing a deal Monday night to bring electric vehicle firm Lucid public through a reverse merger.

Shares were down by as much as 19.6% during midday trading to $28.32, adding to a tumultuous week for the special purpose acquisition company,, from well-known investor Michael Klein. The stock was off 38.6% on Tuesday. The back-to-back drops follows a nearly fivefold increase in the share price since early January when it was first reported the companies were in talks.

Lucid CEO Peter Rawlinson on Tuesday attributed the decline in the share price to media reports that the company's expected valuation was between $12 billion and $15 billion, which led to an initial misunderstanding of the announced deal by investors.in a Zoom interview. "Because to me, what was announced overnight was fantastically positive compared with anything that had been reported before.

 

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