Churchill Capital shareholders approved the SPAC’s merger with Lucid Motors after CEO Michael Klein appealed directly to retail investors

Lucid Air.
Lucid Motors plans to go public in a $24 billion tie-up with a SPAC

  • Churchill Capital Corporation IV is set to close on its merger of EV start-up Lucid Motors on Friday.
  • The closing of the merger was delayed earlier this week after not enough shareholders had cast a vote on the deal.
  • It took a personal appeal to retail investors from Churchill chairman Michael Klein to get approval.
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Shareholders of Churchill Capital Corporation IV approved its merger with EV start-up Lucid Motors following a personal appeal by Churchill chairman Michael Klein to retail investors using trading apps like Robinhood.

The merger deadline was extended on Thursday after not enough shareholders had voted.

“We welcome all of the new shareholders,” Klein said in an investor call on Thursday. “However, we need you to participate in the election process. In particular, if you are participating from the new trading platforms, the new apps that may not necessarily be directing you clearly to a voting service, we need your vote,” Klein said, adding that it “literally takes one minute.”

Churchill Capital has been a popular SPAC stock with retail investors, but it is likely less so after falling 63% from its mid-February peak of $64.84. The SPAC was often a top-mentioned name on Reddit’s Wall Street Bets forum.

Klein also said that e-mail spam filters could have played a role in so few shareholders participating in the scheduled vote and approving the deal on time.

“It should have been mailed or emailed to all stockholders. I know this is technical. And I know that some of those emails may have gone into your spam folder or otherwise. But it’s critical and important to vote and to have the tools to vote,” Klein said. “I need to remind you to check your emails, and check your spam emails.”

Ultimately, 98% of votes cast were in support of the proposed merger between Churchill and Lucid. Shares of the company were up as much as 7% in Friday trades.

Lucid Motors will delist from the New York Stock Exchange and trade on the Nasdaq under the symbol “LCID” beginning on July 26.

Churchill Capital stock chart

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Tesla has ‘significant first-mover advantage’ in the electric vehicle space – but 3 smaller names are also poised to succeed as EV sales climb in 2021, CFRA says

Fisker Ocean
The Fisker Ocean.


Tesla has established a “significant first mover advantage” over new entrants in the ever-expanding electric vehicle market, but a few other smaller names stand out, according to CFRA’s Garrett Nelson.

In a note published Wednesday the senior equity analyst said Amazon-backed Rivian, Lucid Motors, and Fisker will emerge as “success stories,” as EV sales climb in 2021.

Nelson uses four categories to analyze emerging electric-vehicle manufacturers: 1) the specs (price, range, etc.) and overall attractiveness of their initial vehicle models; (2) financial considerations such as their funding sources, balance sheets, and liquidity; (3) the growth opportunity of their sub-industry; and (4) the experience and credibility of management. 

He said all three names fare well in each category. Additionally, all three automakers will be among the first to bring electric vehicles to the road, with Rivian and Lucid expected to put models on the road this year and Fisker in late 2022. 

Fisker debuted in public markets in October, while Lucid Motors announced a merger with SPAC Churchill Capital Corp. IV on Monday. Rivian is looking to go public as soon as September at a valuation of $50 billion, Bloomberg reported earlier this month. 

Nelson added that Tesla has an advantage over new entrants; citing how the company increased its US EV sales volume by over 50% last year.  

“With all the talk of increased competition from new EV models in 2020, Tesla grew its market share from an estimated ~58% share in 2019, as models like the Audi e-Tron, Jaguar I-PACE, and Nissan LEAF largely disappointed from a sales perspective,” Nelson added. 

CFRA forecasts that US EV sales will grow by over 50% to exceed 500,000 units in 2021, especially if the Biden administration passes legislation that could benefit EVs. The research firm has a “strong buy” rating on Fisker, and a “hold” rating for Tesla. 

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