Lucid on Course: Partnerships with Automakers in Sight

The automotive industry is known for being a world where successful concepts quickly set trends. Therefore, it is not surprising that the American company Lucid is currently reportedly in talks with other car manufacturers. The goal of the electric vehicle pioneer is to forge strategic partnerships that could be similar to those of Rivian with Volkswagen. Lucid CEO Peter Rawlinson hinted that his company is in active negotiations with several car manufacturers to provide them with technology. Lucid's expertise in the field of electrical technology enjoys an excellent reputation, and the company is considering a technology transfer in exchange for partners with established supply chains and manufacturing capacities. Lucid has previously relied on collaborations, such as with the British luxury car manufacturer Aston Martin. This partnership envisages providing Lucid's drive technology for the development of a new EV platform by Aston Martin. Rawlinson told Bloomberg: "It would be wonderful if we could supply traditional automakers with technology to help them on their path to sustainability. Perhaps we can leverage economies of scale with their parts inventory and other business areas." Such partnerships can prove profitable for a young EV company. A look at Rivian shows how rewarding such collaborations can be: Volkswagen is investing up to 5.8 billion dollars in the partnership, including convertible bonds and other forms of financing. Lucid is in a similar situation, having recently introduced its Gravity SUV and pursuing plans to bring mid-sized EVs to market that directly compete with Tesla's Model 3 and Model Y. The production of an electrically powered SUV, priced around 50,000 dollars, is expected to begin at the end of 2026. Given these upcoming projects, Lucid could certainly use financial support and a partnership with an established player. Moreover, this would alleviate concerns of some investors who worry about Lucid's dependence on the Saudi state fund, which invested 1.5 billion dollars in the company in the summer and holds about 60% of the shares.