Lucid Motors Inc. reported that it is raising additional financing and is even considering a sale after holding preliminary stage takeover discussions with Ford Motor Company (NYSE:F). The firm has engaged Morgan Stanley to help raise additional funds to pay for further advancement of its vehicle and a new production plant in Arizona.
Lucid discussed with the senior management of Ford on a prospective sale. Ford is not seeking a deal at this time, as new CEO Jim Hackett is in the midst of a review of the firm’s priorities and plans. Established in 2007, Lucid announced its targeting 2019 to commence manufacturing of its all-electric luxury sedan, which it previously reported to begin in 2018. Staffed by numerous engineers from peer Tesla Inc., Lucid issued a video in July demonstrating its Air production model marking speeds of 235 miles an hour. The vehicle will commence at $60,000.
Lucid, which first focused on manufacturing battery packs for electric buses in China, has generated over $100 million from Asian shareholders, including Mitsui & Co and Tsing Capital. Silicon Valley venture capital company Venrock is also a supporter. Lucid is working on its next funding round, named as Series ‘D’.
Peter Rawlinson, the Chief Technology Officer, reported that they don’t have the funds in place. That’s why they require to obtain Series D. It would be negligent to begin moving earth or commence anything until they have a financial runway to implement that professionally and with entire integrity. The Arizona plant is anticipated to cost $700 million. Rawlinson stated Lucid is excited with the response from shareholders. He refused to comment on the extent of the fundraising, or the discussions with Ford. Karen Hampton, a Ford spokeswoman, reported that they don’t comment on rumors.
In May, Ford’s board ousted Mark Fields and engaged Hackett, the ex CEO of office furniture manufacturer Steelcase Inc.