Why is CCIV stock tanking after the merger?

Usually, when there is a big event like a merger, investors are not really sure how this would impact on their investments.

Uncertainty pushes them into selling (better safe than sorry). After a while, they observe for a period of time how that company performs under new circumstances. But then again, not all mergers cause a drop in price, so you have to understand what kind of merger is occurring?

Is it a healthy merger?

There have been complaints that CCTV leaked incorrect information before the merger. The information was to benefit Private Investment in Public Equity (PIPE), who invested alongside the SPAC Merger at the price of $15 per share. The market now blames short-sellers. Negative news could cause uncertainties in some investors.

According to the old adage, no news is good news.

Well, not the case with CCIV / LCID.

CCIV, which recently turned into Lucid Group (LCID) following the merger, has been struggling because of a lack of big news coming from the company's public relations team.

Heading into the 08/25 trading session, the stock had suffered an eight-day losing streak. A good old CCIC discussion might be in order to understand what is happening.

It was recently reported that the company plans to manufacture a performance version and a long-range version of its initial vehicle: the Lucid Air Dream Edition. It is a luxury electric vehicle that will sell for $170,000. It's a fast car (zero to 60 mph in two seconds) and motorists will get approximately 500 miles of range on a single charge.

A car review was quite positive about its vehicle. Plus, Deutsche Bank reiterated the firm's buy rating for the stock.

Overall, there is still plenty of uncertainty surrounding the stock and its future. The price could also be a factor since $170,000 is a lot to ask for when it comes to an electric car, particularly when so many other well-known brands are diving head first into the EV market at a cheaper price.

It was not all bad news on the share price, as the stock rose 0.32% to $21.88 in after hours trading.