In recent months, SPAC (special purpose acquisition company) stocks have garnered a lot of attention among investors and one of those was the Churchill Capital Corp (NYSE:CCIV) stock.
In January this year, the stock had become a bit of a sensation and clocked enormous gains of 550% in a matter of weeks. The trigger behind the move was that Churchill was going to take the electric vehicle company Lucid Motors public.
However, the situation has changed quite dramatically in recent times and the Churchill stock has crashed considerably from those heights. The valuation of the new entity that was going to take Lucid public was $24 billion and that was at a time when investors were becoming increasingly wary of overvalued stocks in the electric vehicle industry. The delayed launch of Dream Edition Air has also been a factor in the steady decline in the Churchill stock. At this point, it might be a good idea for investors to perhaps track the stock closely.