Churchill Capital Corp. IV spikes 19% as report tells investors to expect Lucid Motors deal as soon as Tuesday

Churchill Capital Corp. IV spikes 19% as report tells investors to expect Lucid Motors deal as soon as Tuesday

Shares of Churchill Capital Corp. IV spiked 19% on Monday after a Bloomberg report said a merger with the electric vehicle-maker Lucid Motors could come as soon as Tuesday.

Rumors about a potential merger between the so-called blank-check special purpose acquisition company (SPAC) Churchill Capital IV and Lucid have been in the works for over a month now.

If the deal goes through, it will use $2 billion in cash raised by Churchill Capital IV's IPO, as well as an investment of between $1 billion and $1.5 billion from institutional investors to support the transaction.

When the merger is complete the combined entity will be valued at roughly $15 billion, according to unnamed sources at Bloomberg.

Churchill Capital IV's stock has skyrocketed more than 425% since reports first came out of talks between the Michael Klein-backed SPAC and Lucid Motors last month.

Investors are excited about the prospects of Newark-based Lucid Motors. Lucid is a real competitor to Tesla, and its new all-electric vehicle, the Lucid Air has been praised by critics.

The company's flagship model, the Air Dream Edition, is set to launch in the second half of 2021 and boasts a Tesla-like performance with a new focus on luxury.

Lucid is backed by Saudi Arabia's