Lucid Group (LCID) announced an electric-vehicle technology partnership with Aston Martin Monday. Shares of Lucid stock rallied off a 52-week low, but trimmed gains. Meanwhile, rival Nikola (NKLA) took a dive.
X
Lucid will supply electric powertrains and battery systems to power the first and future all-electric vehicles from Aston Martin, the iconic British luxury carmaker popularized in the James Bond movie franchise. Further, the companies said Aston Martin will in turn give Lucid a 3.7% stake in the company. It also will make cash payments worth about $232 million.
Aston Martin plans to launch its first electric vehicle in 2025. It said on Monday that an existing EV technology partnership with Mercedes-Benz (MBGAF) would continue.
The deal comes amid an ambitious and costly global shift to electric cars.
Lucid Stock Rallies Off Low
Shares of Lucid advanced 3.2% to 5.64 in afternoon trade on the stock market today, paring the morning’s gains to 6.26. LCID stock rallied off a 52-week low of 5.46, reached Friday. On June 1, shares had crashed on a stock sale announcement. MBGAF shares, which trade over the counter, added 0.1% Monday.
On May 31, Saudi Arabia-backed Lucid raised about $3 billion through a stock sale. It also said the new funding would help it bring advanced EV technologies to global users at a faster pace, including in China.
Luxury EV startup Lucid confirmed to Reuters June 9 that it is preparing to enter China, the world’s largest auto market. In the U.S. the luxury Lucid Air electric sedan starts around $87,400.
Meanwhile, Lucid’s startup peer Nikola plunged 12.4% Monday. On Friday, multiple Nikola semi-trucks caught fire at its headquarters in Phoenix. The EV maker said it suspects foul play and is investigating the cause of the fire.
Shares of Tesla (TSLA) tumbled 3.9% Monday amid yet another analyst downgrade.
YOU MAY ALSO LIKE:
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith