Aston Martin Partners With Lucid For Its Incredible EV Tech to Help the Struggling Automaker Turn a New Leaf

Aston Martin Lagonda Global Holdings Plc just announced a new partnership with Lucid Group Inc. The two luxury automakers teamed up to work together on boosting Aston Martin’s electric vehicle technology.

Thanks to the partnership, a well-known British carmaker will unite with a relative newcomer in the automotive industry.

Interestingly, both companies are backed by the sovereign wealth fund of Saudi Arabia. Also, following the announcement, both companies saw a surge in their shares.

Aston Martin and Lucid Team Up

According to their deal, Aston Martin will pay $232 million to Lucid in exchange for battery-electric powertrain components.

The payment will come in a combination of shares and cash. The UK-based manufacturer also decided to extend its long cooperation with Mercedes-Benz Group, with one change — it will no longer issue additional stock to the German carmaker, which already owns around 9% stake.

Lucid entered the partnership with the agreement not to provide “commercial volumes” of its technology to some of Aston Martin’s competitors for a limited time.

The company can go back to supplying these unnamed firms only three months after Aston Martin starts making its own electric vehicles with it.

Alternatively, the company can start supplying competitors again on April 1st, 2026. Whichever of those two happens first.

As mentioned, both companies saw an increase in shares following the joint announcement made on Monday.

Their shares surged by around 15% before pairing the gains. Lucid went up by 3.1% to $5.64 after the announcement. Meanwhile, Aston Martin saw a bigger 11% surge on the London Stock Exchange.

The Partnership Might Mean the End of Aston Martin’s Financial Troubles

The company’s chairman, Lawrence Stroll, said,

The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin.

Stroll has been trying to turn around the legendary 110-year-old company for three years now. Despite its fame for making incredible luxury cars, Aston Martin has had a history of financial woes, and it required several capital raises in the last three years just to stay afloat.

Stroll himself came to the firm’s rescue in early 2020, and since then, the largest capital raises that it saw came from Saudi Arabia’s Public Investment Fund and China’s Zhejiang Geely Holding Group Co.

Philippe Houchois, an analyst working at Jefferies, also commented on the partnership.

He said that Lucid is quite a logical partner for Aston Martin, as it offers incredible EV technology and will help reduce the need for additional funding.

Lucid has some of the best tech in the EV market right now. Its top-of-the-line Lucid Air sedan is especially impressive, boosting the largest range of any production EV at 516 miles without sacrificing speed or efficiency.

The car can accelerate from 0 to 60 miles per hour in as little as 2.7 seconds, even though it weighs an absurd 5,265 pounds.

With Aston Martin’s name and experience building luxurious cars along with Lucid’s market-leading EV tech, the pair may soon launch a truly remarkable vehicle.

Furthermore, according to the analyst, Saudi Arabia’s PIF, which also has a stake in Lucid, could help drive additional synergies on a scale and market access.

As of March 31st of this year, PIF owned approximately 49% of Lucid. Since then, Lucid had revealed that the Fund’s stake climbed to 61%.

The wealth fund also holds 18% of its stake in Aston Martin, so it is quite heavily invested in both firms.

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