Lucid Stock (NASDAQ:LCID)
Both Lucid Group (NASDAQ:LCID) and Aston Martin (OTCPK:AMGDF) saw their share prices increase by double digits on Monday after it was reported that a planned supply arrangement between the two manufacturers might be a game changer. As a result, Lucid stock surged in the market.
Following the terms of the agreement, Aston Martin (OTCPK:AMGDF) will be granted access to Lucid (NASDAQ:LCID) ultra-high performance twin motor drive unit, battery technology, and Wunderbox, in addition to receiving technical assistance and access to Lucid’s intelligent technologies. Lucid Group (NASDAQ:LCID) said that the agreement would significantly confirm their electric powertrain solution and provide a new income stream for the business. The German carmaker Mercedes-Benz AG (OTCPK:MBGAF) will continue to give Aston Martin (OTCPK:AMGDF) access to powertrains and electric architectures for the purpose of vehicle production; however, Mercedes-Benz AG (OTCPK:MBGAF) will be compensated in cash rather than in shares of Aston Martin (OTCPK:AMGDF). Aston Martin (OTCPK:AMGDF), which is looking forward to the future, expects to produce its first plug-in hybrid supercar in 2024 and its first battery-electric vehicle in 2025 before finally transitioning to an all-electric portfolio of vehicles.
An additional intriguing facet of the acquisition is that the Public Investment Fund of Saudi Arabia owns about 49% of Lucid stock and 18% of Aston Martin (OTCPK:AMGDF).
Michael Dean, an analyst with Bloomberg Intelligence, stated that Aston Martin’s (OTCPK:AMGDF) partnership with Lucid for a 3.7% stake in exchange for BEV technology provides comfort that the luxury brand can successfully transition to being fully electric by 2030 as targeted, as well as reducing its reliance on Mercedes alone for technology. A favorable outlook on the acquisition was shared by Philippe Houchois, an analyst at Jefferies, who said that Lucid Group (NASDAQ:LCID) was the most natural electrification partner for Aston Martin due to the efficiency of the Lucid powertrain. He said that the Lucid acquisition should minimize the future financial requirements of the company.
Lucid stock jumped 9.78% to $6.01 on Monday, erasing Friday’s 2023 low. The price of EV stock has fluctuated between $5.46 and $21.78 during the last 52 weeks. During trading in London, Aston Martin (OTCPK:AMGDF) hit a new high of 10.76%.
Featured Image: Unsplash © Daniel Salcius
Author Shariq Khan 
