Rather than a fierce growl from a 4-liter, inline six-cylinder engine, could 007's next Aston Martin DB5 feature batteries and motors?
British sports car specialists Aston Martin have partnered with electric vehicle startup Lucid Group Inc. in a $450 million+ deal that could catapult Aston into the luxury EV space. No word on whether or not the deal includes amphibious or flying-car options for James Bond, Aston Martin's most famous (if fictional) fans.
Aston Martin officials say the deal will power its “high-performance electrification strategy and long-term growth” as it prepares to enter the electric vehicle market. The relationship marks the first time Lucid has flexed its technology arm, as the start-up engineers and manufactures its electric power train completely in-house.
"This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history … and the very best of Silicon Valley innovation and technology from Lucid," said Peter Rawlinson, CEO and CTO of Lucid.
In exchange for the technology, Lucid will receive a 3.7% stake in Aston Martin and $232 million in cash payments, which is a help to the company. The two have a common stakeholder as well: the Public Investment Fund of Saudi Arabia, which owns 60% of Lucid, also has an 18% stake in Aston Martin. Lucid also recently raised $3 billion through a stock sale as it prepares to enter the Chinese market.
Lucid isn’t Aston Martin’s only high-profile partnership. It entered a deal with Mercedes-Benz in October 2020 where Mercedes-Benz provided the company with its powertrain and technology for future vehicles, both ICE and electric. But, the company also announced that agreement had been amended. Aston Martin was originally to issue consideration shares in two tranches, the second of which is still unissued. Due to the amendment, the two will continue working together, but the second tranche will instead be replaced with cash.
Mercedes-Benz will retain its almost 10% stake in the company.
Lawrence Stroll, executive chairman of Aston Martin, said he appreciated the company’s support and was excited to continue their long-term partnership.
“This amendment provides clarity and will see both companies continue our long-standing relationship, providing us with access to Mercedes' world-class technologies as we bring our new range of breathtaking products to market over the coming years,” he said.
The June 26 announcement caused shares of Lucid (Ticker: LCID) to rise to $6.23, a significant increase after hitting a new yearly low of $5.47 and closing at $5.55 the day before. Over the past six months, they have remained relatively flat. The company’s current market capitalization is $11 billion.
