By Dhirendra Tripathic
Investing.com – Shares of Lucid Motors rose 27% on its Nasdaq debut Monday following the electric vehicle maker’s merger with Churchill Capital Corp IV, a blank check company backed by ex-Citigroup banker Michael Klein .
The stock hit its day high of $29.03 in the session so far and later traded 11% higher at $26.88.
Public Investment Fund Saudi Arabia’s sovereign wealth fund had invested more than $1 billion in the electric car maker in 2018 for a significant stake. PIF tweeted to congratulate Lucid on the mention.
Electric vehicle manufacturing is the hottest sector on Wall Street, with investors willing to pour billions of dollars into companies striving for a cleaner and more sustainable future.
Black-check company listings on exchanges and use the cash proceeds from the listing to acquire startup companies, many from the tech sector. Investors are willing to invest in it because the companies are usually led by experienced executives in the field.
Lucid’s promising debut comes in one of the most hyped IPOs of the year, that of Robinhood’s no-commission.
Robinhood sells a third of its shares directly to customers through its app, the largest allotment ever made to private investors by a company.
With a price of each share at $38-$42, Robinhood wants a valuation of about $35 billion. Shares are expected to trade on Thursday.