The automotive industry can be a bit of a copycat industry. When one automaker finds success with a certain strategy, you can bet the competitors across the street take notice. We might be seeing some of that with recent hints that Lucid (NASDAQ: LCID) is in talks with automakers on a potential partnership – perhaps similar to Rivian‘s (NASDAQ: RIVN) joint venture deal with Volkswagen.
Lucid CEO Peter Rawlinson made a comment that the electric vehicle (EV) maker is currently in active talks with “a couple” of automakers about supplying its technology. Lucid’s EV technology is highly regarded in the industry, and it’s looking to share its tech in exchange for a partner with a more established supply chain and manufacturing operation.
It actually wouldn’t be the first deal for Lucid, as the company previously agreed to a partnership with luxury British automaker Aston Martin. The partnership calls for Lucid to provide its EV powertrain technology for Aston Martin to develop a new EV platform.
“It would be lovely if we could supply technology to a traditional car company to help them on their way to sustainability,” said Rawlinson in an interview with Bloomberg. “Perhaps we can leverage economies of scale with their parts bin and other aspects of the business.”
These potential deals, partnerships, or joint ventures can be lucrative for a young EV maker. Consider Rivian’s recent hookup with Volkswagen in a deal worth up to $5.8 billion. Volkswagen has already invested its initial $1 billion into Rivian, and at the closing of the joint venture, Volkswagen will inject another $1.3 billion. The other $3.5 billion is expected to be generated in the form of equity convertible notes and other debt at a later date.
It comes at the perfect time for Rivian, as the company is gearing up to launch its R2 crossover in 2026. Volkswagen will fund 75% of shared platform costs within the joint venture, with Rivian covering the remaining 25%.
Lucid currently sits in a similar scenario, with the recent launch of its Gravity SUV and its plans to launch a number of mid-size EVs aimed right at Tesla’s core Model 3 and Model Y turf. The first vehicle to roll out will be an electric SUV with a price of around $50,000; the plan is for production to begin late in 2026.
With the upcoming launches, Lucid could certainly use a cash injection and partner with a more established supply chain and deep pockets. Plus, it would also relieve some investors who are anxious about Lucid relying on Saudi Arabia’s Public Investment Fund (PIF), which recently infused $1.5 billion in cash into the company over the summer. In fact, the wealth fund owns roughly 60% of Lucid and has continued to pour billions into the company.
