The partnership between Aston and Lucid presents a solution to Aston’s need to offer electric models to meet customer demands, while providing Lucid with much-needed financial support. As part of the deal, Lucid will acquire $100m (£79m) worth of Aston shares and receive $132m in cash over the coming years.
Aston, a venerable 110-year-old brand, aims to introduce its first electric car in 2025, featuring four motors, as opposed to the standard three found in most performance electric vehicles. These cars will be powered by custom versions of Lucid’s advanced drivetrains, capable of delivering a minimum of 1,200 horsepower.
For Lucid, a company founded by former Tesla executives, this partnership offers a much-needed boost following recent financial struggles. Like many new electric vehicle manufacturers, Lucid has faced challenges as traditional car makers enter the market with more affordable models and borrowing costs increase.
Fortunately, Lucid has received substantial support from PIF, the majority shareholder of the company, alleviating some of these pressures.
Lucid has also outlined its expansion plans in Saudi Arabia, where it intends to construct its first international manufacturing plant. Furthermore, Saudi Arabia has expressed its commitment to purchasing 100,000 Lucid cars over the next ten years, aligning with the nation’s goal of producing 500,000 electric vehicles annually by 2030. These green initiatives have been championed by Crown Prince Mohammed bin Salman, who is poised to become the heir to the Saudi royal family’s estimated £1.3 trillion fortune.
One of Prince Mohammed’s notable projects is Neom, a groundbreaking city being built on the Red Sea coast. Expected to cost $500bn and powered entirely by renewable energy, Neom represents Saudi Arabia’s ambitious vision for sustainable development.
However, the Saudi kingdom faces stiff competition in the rapidly changing global automotive market, where established American and European car manufacturers are being challenged by China. As the world’s largest car market, China has spent decades establishing an extensive network of gigafactories, lithium refineries, and mining investments to support its thriving electric vehicle industry.
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