LUCID has an important day today. Traders beware
Since its merger with Churchill Capital Corp IVon July 23, Lucid Motors (NASDAQ:LCID) stock has garnered considerable attention. Innovation within the sector has helped raise the profile of electronic vehicle manufacturers and increased public fascination with the progress being made.
These trends, however, have not yielded such positive results for investors. As of this writing, the stock has declined 2.47% on the day. This is in keeping with a recent trend, as LCID stock has fallen by 9.85% over the past five days.
September, however, marks two important deadlines for the company and its investors. Up until this point, company insiders have been blocked from selling shares due to a lock-up provision. These initiatives are common for SPAC mergers, particularly when dealing with early stage companies. As the company stated in the merger announcement,
As of Sept. 1, though, this restriction will lift and with the recent patterns of decline, pressure to sell will be strong for those who hold LCID stock. However, this provision only applies to PIPE (private investment in public equity) investors. Other stakeholders face much longer deadlines, typically six or 18 months after receiving their shares, which means waiting until at least the end of 2021.