For his second "Executive Decision" segment of Tuesday night's Mad Money program, Jim Cramer spoke with Peter Rawlinson, CEO and CTO of Lucid Motors, which will soon be merging with Churchill Capital IV (CCIV) to enter the public market.
Rawlinson said that Lucid is the only company other than Tesla (TSLA) to create its batteries, motors, drivetrain, and software all in-house, which allows them to build cars with incredible efficiency. Lucid currently has 7,500 preorders for its Lucid Air, which will sell for $170,000.
As a result of their SPAC merger, Lucid has raised $4.5 billion, which Rawlinson explained is enough to fund the company bringing the entire Lucid Air line into production by 2023. The company's plant in Arizona will begin production of the first Lucid Air trims in the second half of 2021.
When asked about competition, Rawlinson said he welcomes competition from all comers, including Apple (AAPL) , but he noted that EVs are a technology race, and automakers can't take a commodity approach if they expect to succeed.
We looked at CCIV on February 23 and wrote that "This is my first time looking at the charts of CCIV, so I have no skin in the game. This kind of weakness in a hot name could easily spread to other speculative issues. Watch your six."
Let's visit with the charts again.
In this updated daily Japanese candlestick chart of CCIV, below, we can see that prices have recovered slightly in recent days. Tuesday's candle pattern is a doji and could mark the end of this minor uptrend. A bearish candle on Wednesday would be confirmation of a top. Prices are below the declining 20-day moving average line but recently above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line has been mostly flat this month but maybe with a slight rise. If buyers are being more aggressive they are not being all that aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line.
In this first daily Point and Figure chart of CCIV, below, we used daily price data and a percentage move scaling. Here this chart shows a nearby price target in the $35 area.
In this second daily Point and Figure chart of CCIV, below, we used the same daily price data but scaled the chart the traditional way with even dollar increments. Here the result is a bearish price target of $0. Ouch.
Bottom line strategy: EVs are the future. I just wonder how many people can afford a $170,000 model.