Shares of Lucid Group Inc. bounced sharply Monday, off the previous session’s record closing low, after the electric-vehicle maker and battery-pack maker disclosed a supply agreement with U.K.-based luxury automaker Aston Martin Lagonda Global Holdings PLC.
Under the terms of the agreement, Aston Martin
ARGGY,
AML,
will pay a $232 million technology access fee to Lucid
LCID,
including $100 million in shares of Aston Martin and $132 million in cash payments over a three-year period.
Aston Martin also committed to a minimum spend on Lucid powertrain components of $225 million
In turn, Lucid will provide Aston Martin access to its powertrain and battery-system technologies, and Lucid’s powertrain and battery components will be integrated with Aston Martin’s battery electric vehicle (BEV) chassis.
Lucid’s stock charged up 12.7% in morning trading Monday. That comes after the stock had tumbled 17.0% amid a five-day losing streak to close Friday at a record low of $5.47.
Aston Martin’s U.K.-listed shares ran up 11.1% toward a 14-month high, while the U.S.-listed shares climbed 12.1%.
The companies’ long-term partnership is subject to approval by Aston Martin shareholders and other conditions. The agreement may be terminated if the conditions are satisfied, or waived, by Dec. 31, 2023.
Lucid’s stock has tumbled 24.7% over the past three months, while the Global X Autonomous and Electric Vehicles exchange-traded fund
DRIV,
has rallied 11.7% and the S&P 500
SPX,
has gained 9.7%. Aston Martin’s U.K.-listed shares have climbed 70.8% over the past three months.
