Aston Martin Seeks High-Tech
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Aston Martin Seeks High-Tech Assistance From Lucid: On Monday, Aston Martin (AML.L) said that it had reached an agreement that would give Lucid Group (LCID.O) a 3.7% stake in exchange for access to its “high performance” technology.
Lucid will receive 28.4 million new ordinary shares, worth approximately $232 million, as part of the agreement with Aston Martin.
There is a phenomenal cost associated with the transition to electric vehicles, with automobile manufacturers committing around $1.2 trillion Aston Martin Seeks High-Tech Assistance From Lucid to the low-emission technology globally. For smaller carmakers, such as Aston Martin, the process of transitioning is more dependent on partnerships.
The company plans to introduce its first electric vehicle in 2025 and has relied up to this point on Mercedes as its “big brother” for the necessary technology.
In a separate announcement on Monday, Aston Martin announced that it had amended an agreement with Mercedes-Benz (MBGn.DE) meaning the German carmaker would not increase its stake as planned, but would continue to provide Aston Martin with engine and electric vehicle technology and maintain around 9% ownership.
According to the agreement, Lucid will be able to use the company’s industry-leading technology for its BEVs, including the electric powertrains Aston Martin Seeks High-Tech Assistance From Lucid and batteries.
By 2026, Aston Martin will offer an electrified version of all its new models, and by 2030, its core range will be entirely electric.
As a result of the agreement, Aston Martin now has two world-class suppliers that will support its electrification strategy, said Lawrence Stroll, Aston Martin Seeks High-Tech Assistance From Lucid executive chairman and top shareholder.
The Chinese carmaker Geely (0175.HK) recently invested in Aston Martin, giving the British luxury carmaker access to Geely’s technologies and components.
There is a common shareholder between Lucid and Aston Martin in Saudi Arabia’s Public Investment Fund (PIF). It was announced last year that the Saudi wealth fund had become Aston Martin’s second largest shareholder.
Also, PIF is Lucid’s main shareholder and last month provided substantially all the funds for a $3 billion stock offering by the U.S. EV manufacturer.
The additional funds are crucial as Lucid, like its peers, struggles with mounting losses and tightening cash reserves due to recession fears and a price war triggered by the market leader Tesla Inc (TSLA.O).
A luxury sedan manufacturer, Lucid, lowered its production forecast for 2023 and reported lower revenue in the first quarter than expected last month.
In the early hours of the day, the Aston Martin shares rose as much as 14.6%, but at 1009 GMT, they were up around 10%.
History of Lucid Motors
Lucid Motors is an electric vehicle manufacturer based in California, USA. The company was founded in 2007 by Sam Weng, Peter Rawlinson and Aston Martin Seeks High-Tech Assistance From Lucid David Salle, with the goal of bringing the highest levels of technology, design and performance to the electric car market.
Since its inception, Lucid Motors has made significant progress in the vehicle technology fields, most notably its groundbreaking batteries. Lucid’s battery technology offers high energy density, powering vehicles over long distances without sacrificing performance. The company also notably pioneered highly advanced advanced driver-assistance systems, which have earned them the nickname of “Tesla Killer” amongst industry watchers.
The primary objectives of this partnership are to:
- Create a high-performance electric vehicle platform that can be used for various Aston Martin model lines.
- Develop the vehicle platform to be Aston Martin Seeks High-Tech Assistance From Lucid, highly efficient and to offer a range of technologies to improve safety, comfort, and convenience for drivers.
- Utilize Lucid’s power train and software system integration to leverage the latest advancements in electric vehicle technology.
- Integrate Lucid’s battery technology to improve vehicle range and maximize performance.
Also read this: Oracle Records 50% Growth In 2023 Despite Tech Challenges
Lucid and Aston Martin’s BEV deal, by the numbers
- A total of 28.4 million ordinary shares are being issued to Lucid under the new agreement, according to Reuters
- According to Reuters, Aston Martin and Lucid’s deal is estimated to be worth $232 million, including cash and shares
- $2 billion ($2.54 million): Amount that Aston Martin has committed over the next five years to facilitate its electrification.
The Lucid Group announces a strategic technology partnership with Aston Martin
The luxury electric vehicle manufacturer Lucid Group, Inc. (LCID) and iconic British brand Aston Martin have entered into a long-term strategic technology partnership.
As part of the partnership, Lucid’s world-leading Aston Martin Seeks High-Tech Assistance From Lucid electric powertrain technology, engineered and manufactured in-house by Lucid, will be utilized to accelerate Aston Martin’s high-performance electrification strategy and long-term growth.
As a result of this collaboration, Aston Martin Seeks High-Tech Assistance From Lucid will have access to cutting-edge electric drivetrain technology for their future batteries.
The CEO and CTO of Lucid, Peter Rawlinson, expressed excitement about this landmark collaboration, which combines the heritage and success of Aston Martin Seeks High-Tech Assistance From Lucid with the innovation of Silicon Valley. In choosing Lucid, Aston Martin demonstrates the profound benefits of using Lucid’s electric drivetrain technology, as exemplified by the impressive 516-mile EPA-estimated range of the Lucid Air Grand Touring.
