Ford Not Interested In Takeover Of Lucid Motors

3 weeks ago by Eric Loveday 34

Lucid Air

Ford says it’s not interested in a takeover of Lucid Motors at this stage of the game.

Raising enough funds to build a factory isn’t easy and Lucid Motors is finding that out the hard way now.

Lucid Motors chief technology officer Peter Rawlinson previously commented:

“We don’t have the money in place. That’s why we need to secure Series D. It would be irresponsible to start moving earth or start anything until we have a financial runway to execute that professionally and with absolute integrity.” 

Lucid’s Speed Car Group

It appears as though Lucid was trying to go at it a different way. Rather than raise funds, Lucid apparently reached out to Ford to see if the two automakers could ink out a takeover deal. Lucid reportedly talked to some high-level execs at Ford, but the takeover of Lucid was turned down.

Lucid is now exploring some other options, which include a new round of financing or an outright sale to an interested party. Bloomberg reports:

“Electric carmaker Lucid Motors Inc. is raising a new round of financing and is also considering an outright sale after holding early-stage takeover talks with Ford Motor Co., according to people familiar with the situation.”

“The Menlo Park, California-based firm has hired Morgan Stanley to help raise more money to pay for further development of its vehicle and a new manufacturing plant in Arizona…”

Officially, neither Lucid nor Ford were willing to comment on the situation. Karen Hampton, a Ford spokeswoman, did offer this response:

“We don’t comment on speculation.”

Bloomberg’s sources indicate that Ford may still be interested in Lucid, but not at this point in time.

Source: Bloomberg

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35 responses to "Ford Not Interested In Takeover Of Lucid Motors"

  1. Mike says:

    Odd that Ford wouldn’t be interested. Lucid would have put them solidly in the Luxury EV class. Watch a Chinese company move in. They seem to be much more interested in making forward-thinking investments than legacy US companies.

    1. ffbj says:

      I think the Chinese already own that, or it’s heavily backed by a Chinese investor.

    2. floydboy says:

      I was under the impression that the Chinese were already big players in Lucid?

    3. mx says:

      Do they have any IP worth buying?
      Ford may not have any experts to verify or quantify Lucid IP.

      1. Pushmi-Pullyu says:

        “Do they have any IP worth buying?”

        Exactly what I was wondering. Lucid made a concept car with a very nice looking interior, but that doesn’t prove their EV powertrain tech is competitive.

        “Ford may not have any experts to verify or quantify Lucid IP.”

        I doubt that’s the problem. Ford could always hire some experts — say, AC Propulsion or some engineers working there — to check them out, if it was really interested.

        Now, I’m not saying Lucid doesn’t have the IP to make a compelling EV. I’m just expressing healthy skepticism in saying that I don’t think they have proven that they do.

        There could be any number of reasons Ford isn’t interested. Ford certainly has not shown any desire to build or produce a long-range plug-in EV designed from the ground up, and I don’t see that this offer from Lucid would necessarily induce Ford to change its head-in-the-sand attitude toward the EV revolution.

    4. CDAVIS says:

      @Mike said: “…Watch a Chinese company move in.”
      ——

      Already has long ago.

    5. jpo234 says:

      Two things:

      Lucid is the brain child of Jia Yueting, the guy also behind Faraday Future. So, the Chinese were in right from the beginning.

      Chinese companies usually go for established brands. A startup is not usually their preferred target.

      1. Rob Stark says:

        Lucid Motors is the brainchild of Chinese-American Sam Weng.

        Jia Yueting brainchild is Faraday Future and LeEco.

        Jia was a minority partner but has now sold his investment in Lucid Motors.

        The major investors in Lucid Motors are Venrock Capital, the investment arm of the Rockerfeller Trust, and Mitsui of Japan.

        Senior Lucid executives like Sam and Peter Rawlinson also have some stake in Lucid.

    6. pjwood1 says:

      I don’t think Ford’s investors would have management pick up a co like Lucid. Share performance was the common reason Fields got let go. Anyone in the CEO spot, even if they see how long-term automotive managements need to think right now, still needs to answer to how long the investors and board are telling them to.

      In terms of waiting for someone else to commercialize technology, Ford looks like they’re right there with VW.

  2. ffbj says:

    “We don’t comment on speculation.”–But we do.
    Hopefully they will find a buyer, Lucid looks to have built something worthwhile.
    Though this further underlines the lack of competition for Tesla.
    Maybe they should take out an ad:
    “For Sale: Future Tesla Killer”(hardly driven)

  3. La Frennia di Mamata says:

    Like Faraday,,Lucid Has Nothing that Ford can’t achieve by themselves!

  4. Bacardi says:

    Ford already announced it’ll have a 300 mile SUV/CUV…Unless you want $75k Ford Escape EV, Lucid doesn’t appear to be the best choice…

    1. pjwood1 says:

      I think Ford has a strategy behind why they would advocate for fewer cars in cities:
      https://www.ft.com/content/9917f1ea-3437-11e7-bce4-9023f8c0fd2e?mhq5j=e1

      I don’t think it means a 300 mile Escape, but you never know.

  5. Chris O says:

    Maybe Lucid Motors hasn’t established itself enough to be worth Ford’s while. Sell a fair number of cars, get good reviews gain some notoriety as a compelling Tesla competitor, basically prove it has a viable place in market and the big OEMs will start paying attention.

    Of course that won’t happen without lots of money so there is a chicken and egg problem here.

    1. Pushmi-Pullyu says:

      +5

      Couldn’t have said it better myself.

  6. jpo234 says:

    Porsche, Audi and Mercedes will be ready before Lucid. The window of opportunity for new entrants is closing fast.

    1. Chris O says:

      Exactly. I can see how Ford isn’t interested in taking on the big boys using an untested early stage start up few people even ever heard of as a platform.

      Tesla exploited a rare historic window of opportunity, using a period the industry was in crisis and lawmakers were desperate to reduce oil addiction to introduce a new game nobody had any interest in playing.

      A lot has changed since then.

  7. La Frennia di Mamata says:

    Ford never did well on takeovers ,they ended up reselling them for pennies on the dollar after they were done running them into the ground & Lost their shirt in turn, ie: Jaguar, Volvo ,Austin Martin etc: Which Now turning a Good Profit under someone else’s Watch. Easy Come Easier GO!!

    1. bjrosen says:

      Not only did Ford make a perfect hash out of all those companies that you mentioned, they’ve also driven their home grown luxury division into the ground. Lincoln makes cars for limo companies, I doubt any luxury buyers even bother to slow down when they pass a Lincoln dealership. Lucid is the wrong match for Ford. If they had a Model 3 competitor ready to go instead of a Model S competitor then you could make a case for Ford buying them but they don’t. Ford must have their own EVs in development and they can probably get them into production before they could get the Lucid into production.

      1. La Frennia di Mamata says:

        Good Point ! I Forgot all about Lincoln ..Ford is under the False Belief, that, if they Place New body style on a Regular Ford Chassis & running Gear and then Slap a Lincoln Sticker on it People won’t Notice the difference..
        Well..”Surprise , Surprise , Surprise” Said Gomer Pyle .. …

        1. Throwback says:

          In fairness Lincoln sales are up year over year so far this year. Ford is profitable, what got Fields fired was the share price which decreased drastically under his watch.

  8. Someone out there says:

    Lucid should have someone else manufacture the car for them. It’s more expensive in the long run but it takes much less cash to get going instead of building their own factory from start.

    1. Pushmi-Pullyu says:

      Yeah, they could have for example Magna Steyr make the car on a limited production basis. But can Lucid attract even enough funding for that?

      I think they should start out by sponsoring an EV racing team, perhaps in the Formula E racing series. Establish that they really do have the engineering expertise to build a competitive EV powertrain, and then perhaps they can attract some investors with deep pockets.

      1. Throwback says:

        Lucid’s struggling to get cash, the last thing they need is a racing team.

  9. Vexar says:

    I can’t imagine Ford buying a company in need of funding for EV research and development. I think Ford has planned the money they intend on spending in EV spaces and their strategy or lack thereof to be competitive is set. If Lucid/Atieva had started generating any cash flow at all by now, they wouldn’t be on the precipice like this. Maybe if they had made some car parts, they would have a chance. Like those nifty seats.

  10. Mark C says:

    Even if Ford is interested at some point, and I wouldn’t hold my breath on that idea, time is on their side. When Lucid goes to “fire sale” pricing, Ford might make a low-ball offer on that price.

    IMHO, Ford has no current interest in a BEV, they are into plug-in hybrids as long as they can milk them out.

  11. vdiv says:

    An Apple a day keeps the fossils away. 😉

  12. traybiner says:

    Apple!

  13. JeffD says:

    I wonder if the Renault-Nissan Alliance would have enough interest and capital to be interested in adding a high end start up to the mix?

  14. Don Zenga says:

    It’s a golden opportunity to take over Lucid Motors, use their technology and manufacture that vehicle in one of the Ford’s facilities.

    But Ford is still a ICE company and now we know that their new boss is just the same as their old boss.

    1. Throwback says:

      What IP does Lucid own? You’re assuming they have some tech that is unique to them.

  15. Mister G says:

    Apple, UBER, alphabet…one of them should buy lucid.

    1. La Frennia di Mamata says:

      Buy Lucid to be relieved of their profits..

  16. Kuk says:

    Hey Apple, this is opportunity for you! 😀

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