Aston Martin and Lucid Motors have agreed to begin producing electric cars with the highest levels of elegance and performance by 2025. The British automaker will create luxurious, great-performing electric vehicles using Lucid components.
The London-listed luxury manufacturer, which saw its losses more than double in 2022 to nearly £500 million ($631m), has reached an agreement worth £182 million ($229.7 million) in shares and cash whereby Lucid will acquire 3.7% ownership in Aston Martin.
Aston Martin delivered 6,400 high-end automobiles in 2022 and has made significant investments in more recent models. The automaker announced that it would choose Lucid Motors’s powertrain parts for its first and several upcoming BEV vehicles.
According to Aston Martin, the agreement, which calls for spending a minimum of £177 million ($223.4 million) alongside Lucid Motors, would support the official introduction of the company’s initial battery electric vehicle by 2025.
Roberto Fedeli, Aston Martin’s chief technology officer, stated that this agreement with Lucid is going to enable the company to establish a single, customized battery electric vehicle platform that will work for all upcoming Aston Martin models, including sports cars, hypercars and SUVs.
As a result of an ongoing strategic partnership that involves technology cooperation and participation on the board of the British automaker, Mercedes-Benz has a 9.4% share in Aston Martin.
Since a few years ago, analysts in the industry have questioned the way smaller automakers, such as Aston Martin, could manage the costly transition to electric automobiles and the growing need for technological advances without being controlled by a bigger auto group, similar to how Bentley is owned by Volkswagen and how Rolls-Royce is owned by BMW. According to Lawrence Stroll, the potential partnership with Lucid would be transformational for the future electric vehicle-led expansion of Aston Martin. In addition to Mercedes-Benz, the company presently has two top-tier suppliers to help with its internal investments and research being made in order to execute its electrification goal.
Geely, one of the biggest independent automakers in China, raised its ownership in Aston Martin to 17% last month.
Aston Martin’s market value has climbed by about 80% in the past year thanks to a robust recovery mood in the market, which was further fueled by the news of the transaction. That announcement pushed shares up 10% and made the luxury manufacturer the biggest climber in the FTSE 250.
The announcement is the most recent in a series of tactical moves intended to increase the legendary British automaker’s relevance in the contemporary world, according to Russ Mould. These strategic moves by Aston Martin show that legacy carmakers are gearing to take on startups such as Kandi Technologies Group Inc. (NASDAQ: KNDI) in the battle for consumers within the EV space.
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