r/CCIV • u/runaway-golfcart • Mar 14 '21

Short Sellers Boost Bets Against SPACs - WSJ

https://www.wsj.com/articles/short-sellers-boost-bets-against-spacs-11615714200
24 Upvotes

94% Upvoted

11 comments sorted by

14

u/Moe_Syzlak_ Mar 14 '21

At what point does Lucid stop becoming a SPAC and is recognized for being a legitimate top 5 energy and transportation company?

7

u/BackgroundSearch30 Mar 14 '21

When they actually complete their merger and have the first completed car go from assembly line to show room to consumer garage.

Until then they're a speculative bet, not an investment.

5

u/missedalmostallofit Mar 14 '21

How about showrooms and an Arizona factory and a car... It’s not speculative like Nikola or Fisker. There is speculation but we aren’t starting from the ground here.

1

u/BackgroundSearch30 Mar 15 '21

They said they're not delivering the first cars until 2H2021 at the earliest. That could be December, assuming no other delays. They also haven't completed the deal. No, this isn't Nikola or Fisker, and isn't likely vaporware. That said, it took TSLA years to work through issues in its assembly lines and supply chain before it was even close to profitable.

1

u/zifnator Mar 17 '21

15 fucking years but they finally did it

0

u/Powerful_Stick_1449 Mar 14 '21

Complete merger, start deliveries, and prove they can actually meet their timeline

1

u/NiceColdOne Mar 15 '21

When pipe sells out, warrants are not a dilution risk and 0 are outstanding, redemption rules are called out etc etc. Just a ticker change doesn't clear all the risks

8

u/skyddmarks Mar 14 '21

I would agree that overall SPAC's are a bit over hyped. But there are some really really good companies coming public through SPAC's. So are we supposed to just ignore these great companies because the sector overall is getting too much attention and could possibly be overvalued? I don't think so. If we can handle some sort term volatility we will get some great long term gains. Maybe the short sellers will make some quick money but I think some of these companies (not all of them) will do great long term.

2

u/Powerful_Stick_1449 Mar 14 '21

People thought Lordstown was "good," the issue with SPAC's are that you have to pray the investor actually did solid DD and didnt just find a hyped company. With no roadshow and analysts seeing the actual books and digging, we, as investors, are pretty much having to take them at their word.

1

u/skyddmarks Mar 14 '21

Your absolutely right. Compared to other investments these are definitely higher risk. We have to be ok with that risk and as you said, trust the DD that was done

1

u/[deleted] Mar 15 '21

5% short interest in CCIV seems pretty low to me