Shares of Churchill Capital (CCIV), the one supposedly merging with Lucid Motors soared 20% after rumors that the company could collaborate with Apple (AAPL).
The speculation comes after Wccftech late Friday highlighted a story from earlier this month in the Guardian where Lucid Motors CEO Peter Rawlinson declined to comment when asked if the EV maker had been approached by Apple. Adding potential more heft to the rumor is the fact that former chief Apple designer Jony Ive is on the board of Lucid.
The Lucid Motors rumors follow a story earlier this month that said a Magna International (MGA) joint venture with LG Electronics was close to signing a deal to develop Apple electric vehicles.
All is selling electric vehicle stocks without doing any quantitative analysis or comparing their prospects. CCIV stock was absurdly priced at $60, as Martin explained, but the math is even more appealing at $20.
It’s all too tempting to get caught up in the market action. When the price rises, it seems to confirm the story. When the stock price falls, people assume something is wrong with the business.
Volatility, on the other hand, can be just noise at times. After the massive decline in CCIV stock, Lucid’s conditions aren’t much worse than they were a few months earlier.
Although many EV stocks are unlikely to ever return to their previous highs, some bargains are emerging in the higher-quality names. Lucid is unquestionably one of the best choices.