In this video I give my Updated CCIV Stock Price Prediction and tell you WHY the stock price crashed so significantly on Friday. I also go over the Bloomberg article released on Saturday CONFIRMING the Merger as early as Tuesday.
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On Thursday the CCIV Stock hit new highs around $65 a share and then fell sharply before the closing bell. On Friday the stock opened higher and traded around the $60 mark all day before a large crash just before that Friday bell.
There were a significant amount of In The Money call options expiring on Friday, bought by regular investors like you and I, these options would've been written by market makers and large institutions (mostly).
These institutions would've wanted the call options to expire Out Of The Money, or at least for a lower price in the money, and therefore could've sold their shares, or opened a short position, to push the price down.
A Bloomberg article released on Saturday, said that the Merger could be announced early next week, by Tuesday, at a $15bn valuation, not a $12bn valuation, but how does this effect YOUR Shares?
CCIV will only be putting $2bn into the deal either way, so the original CCIV shareholders (us) will either own 16.67% of Lucid Motors or 13.33%, assuming no dilution, that gives lucid Motors a market cap of $84bn or $105bn at its current $53 a share.
if the CCIV stock increases to $70-100 a share, that post merger market cap could increase to $150bn or $200bn. I personally can't justify Lucid Motors at a $200bn market cap right now.
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