What’s happening with the shares of Churchill Capital, partner of Lucid SPAC?

Shares of a special purpose acquisition company Churchill Capital Corp IV (NYSE:CCIV) closed more than 2% lower on Thursday, after falling 4.8% in intraday trading.

What happened: CCIV traded up around 0.5% in the first pre-market session on Friday, amid strong interest from retail traders on social media.

Churchill Capital said a special meeting of shareholders to close its highly anticipated merger with the California-based luxury electric vehicle maker Lucid Engines has been adjourned to Friday July 23.

Churchill Capital added that it adjourned the meeting to give its shareholders more time to vote on the final proposal required for the merger. Shareholders on Thursday approved all but one of the proposals, according to the company.

See also: Churchill Capital appears to be stuck in a pennant pattern

Why is this important: The CCIV said it “encourages ALL shareholders, including individual shareholders, to vote, regardless of the number of shares held. Shares that are not voted will not be counted as FOR the proposal.”

CCIV’s appeal to investors is seen as a sign that SPAC is struggling to get shareholder approval for the deal.

Meanwhile, Lucid cited a report that said the reason for the lack of votes could be that shareholders weren’t getting the email in the first place, likely due to spam filters.

Churchill Capital’s call was a favorite with retail investors after the stock soared to nearly $65 a share in February as investors anticipated news of SPAC’s merger with Lucid Motors .

About 22.7% of Churchill Capital’s free float is short, according to the latest available data from Yahoo! Finance.

Some of the EV startups that have taken the SPAC route to go public have found themselves mired in controversy. Canoo inc. (NASDAQ: GOEV), Nikola Corp. (NASDAQ: NKLA) and Lordstown Motors Corporation. (NASDAQ:RIDE) have all come under scrutiny from investors following SEC investigations, filing delays or reports from short sellers.

However, Churchill’s SPAC partner Lucid Motors said earlier this month it was on track to begin production and deliveries in the second half of this year.

Read next: Lucid sees Tesla as the true competition in the ‘two-horse race’ EV market: CEO

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Photo: Courtesy of Lucid Motors

Sallie R. Loera