Lucid Group Stock News: LCID jumps nearly 10% after announcing Aston Martin partnership
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- Lucid inks deal with Aston Martin to share battery technology.
- Lucid stock surges 9.7% in Monday’s premarket to $6.
- LCID stock is down 30% over the past month.
- An agreement to supply Aston Martin with batteries and powertrains is worth more than $450 million to Lucid.
Lucid Group (LCID) stock bounced 9.7% in Monday’s premarket after the Saudi Arabia-controlled electric vehicle company from California announced a lucrative partnership to supply the British sportscar manufacturer Aston Martin with its proprietary electric battery and powertrain technology.
The deal calls for Lucid to share its technology and engineering prowess with Aston Martin in exchange for shares of the latter and phased cash payments.
Lucid News: Aston Martin deals viewed as beginning of turnaround
Lucid has been dealt a difficult past year. Production issues at the start of the year greatly curtailed overall production levels, helping losses to expand. Then the stock sold off severely in June after the company announced a new share sale to raise in excess of $3 billion in much-needed cash.
Monday’s announcement of the partnership with Aston Martin is truly the first good news all year. Lucid management says its long-term deal with Aston Martin should be worth in excess of $450 million and will make Lucid a major shareholder in the famed British brand.
"This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history, including winning at Le Mans and its current successes in F1, and the very best of Silicon Valley innovation and technology from Lucid," said CEO and CTO Peter Rawlinson of Lucid. "In line with its strategy, Aston Martin selected Lucid, recognizing the profound benefits of adopting its world-leading electric drivetrain technology, exemplified by the breakthrough 516-mile EPA-estimated range achieved by the Lucid Air Grand Touring."
Due in part to the Lucid Air’s competition-beating battery range, the vehicle won the 2023 World Luxury Car Award.
"The supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin," said Lawrence Stroll, Executive Chairman of Aston Martin. "Based on our strategy and requirements, we selected Lucid, gaining access to the industry's highest performance and most innovative technologies for our future BEV products."
The agreement requires Lucid employees to aid Aston Martin with the integration of its twin motor drive unit, full battery technology, and onboard charging unit called the “Wunderbox” into Aston Martin’s own vehicle platform.
In related EV news, Goldman Sach downgraded Tesla (TSLA) to neutral. The leading EV maker fell 1.5% in the premarket. Additionally, Chinese EV automaker XPeng (XPEV) announced that it will release its new G6 Ultra Smart Coupe SUV on Thursday, June 29.
Lucid stock forecast
Lucid stock cratered in June, losing 30% of its value, after the company announced it would raise $3 billion from investors in a materially dilutive share sale. The stock reached an all-time low last Friday at $5.46 per share.
It was good timing on Lucid management’s part as LCID stock just reached an “oversold” status on the Relative Strength Index (RSI). Reaching $6 in the premarket is a positive sign, but shares really need to overtake the $6.20 former support level to lead traders toward a sustained rally. That level fortified the share price around New Year’s and then again in mid-June. A solid rally could push LCID up to the resistance range between $8 and $8.28 or even the $8.69 resistance level from April 11 and 12.
LCID daily chart
