TSLA - I Bought Into the Lucid Motors Hype Early. Here's What I'm Excited About -- and What I'm Afraid Of.
It's now been over a month since Bloomberg News broke the news that special-purpose acquisition company (SPAC) Churchill Capital IV (NYSE: CCIV) was in talks to merge with Lucid Motors , one of the hottest electrical vehicle (EV) start-ups that many regard as "the next Tesla (NASDAQ: TSLA) ." As an early Tesla investor and avid EV enthusiast, I was naturally interested.
It goes without saying that investing based on rumors is extremely risky, but after carefully assessing the risks, credibility of the speculation, and potential upside, I decided to purchase warrants in Churchill Capital IV last month. In the weeks since, Churchill Capital IV shares have continued to skyrocket as new details around the potential deal trickle out. Warrants tend to trade at a discount relative to their intrinsic value, while also exhibiting significant leverage as derivatives. Accordingly, my position is already enjoying massive gains.
Lucid Air deliveries begin this spring. Image source: Lucid Motors.
For further details see:
I Bought Into the Lucid Motors Hype Early. Here's What I'm Excited About -- and What I'm Afraid Of.