Lucid Wants to Be a Supplier That Sells Cars on the Side

Lucid Motors has developed and designed some award-winning electric vehicles in its young existence, but its end game isn’t EVs. According to Lucid CEO and CTO Peter Rawlinson, the goal is to be the “Intel” of the automotive world. 

In an interview with Rawlinson, InsideEVs reports that the EV boss sees cars as a small fraction of Lucid’s future profitability plans. His strategy is to see Lucid evolve from an EV automaker to a hardware and software provider. The reasons are plenty, but the main one is to future-proof the company while making lots of money in the process.

“I’d love it to be 20-80,” said Rawlinson. “Twenty percent doing cars, 80 percent licensing. Because the vision I have for Lucid is just as there’s an Intel inside your laptop, there’s a Lucid inside a Honda or a Toyota.”

Intel is one of the largest tech companies in the world. Although its product portfolio includes software, gaming systems, and related Wi-Fi devices, Intel is known mainly for its chips and processors, which are ubiquitous in the PC world. Rawlinson wants Lucid to be that, but for EVs. 

By focusing on licensing its electric powertrains and battery technology to automakers large and small, Lucid’s position as a supplier would also be adaptable to an ever-changing retail landscape. For example, mass-market auto manufacturers might have a more difficult time transitioning toward or away from EV development based on consumer trends and government support. Lucid could swoop in and provide the EV components others can’t or won’t thpull the R&D budget trigger on.

“In a few years’ time, there’ll be this realization, ‘Oh my god, we’re going to have to go to a sustainable mode of transportation,'” said Rawlinson. “Well, then we will be in a much better position to offer those companies that haven’t invested in the [EV] technology our technology through licensing.”

Licensing isn’t a new trail to blaze for Lucid, either. The company previously supplied battery tech to the Formula E racing series and currently has a contract to provide Aston Martin with its motors, batteries, and Wunderbox on-board charger for an upcoming electric model. However, the partnership is structured such that Lucid is manufacturing the powertrain at its Arizona plant and then shipping it to Aston for final vehicle assembly in the U.K. Rawlinson doesn’t expect that setup to be the norm and envisions a true licensing deal where automakers build everything themselves, but need Lucid’s software to make it sing.

“They’d manufacture the hardware under license in their factories…but [the components] wouldn’t work until the encrypted flash of software comes from us,” Rawlinson told InsideEVs. “You flash your Microsoft Office—ka-chunk—Bill Gates gets his royalty, doesn’t he? And I want to be like that.”

There’s no timeline on when this 20-80 Lucid plan would be in place, if at all, Rawlinson later admits. “I’m not making any promises,” he said. “And the reason that is not baked into our financials is I can’t guarantee that any of that’s going to happen.” More vaporware from an EV automaker? Sigh, I guess there are some things we can rely on.

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