Lucid Motors CEO Envisions a Future Focused on Tech Licensing

Lucid Motors CEO and CTO Peter Rawlinson has outlined his vision for the company’s future, emphasizing a shift toward technology licensing rather than full-scale car production. He expressed a preference for a 20-80 split, with 20% of the business dedicated to manufacturing vehicles and the remaining 80% focused on licensing Lucid’s advanced EV technology to other automakers. He compared his goal to the way Intel operates in the computing industry, envisioning a future where Lucid’s technology is integrated into vehicles from major brands like Honda and Toyota.

Lucid has already taken steps in this direction. The company previously supplied battery technology to the Formula E racing series and more recently signed a $450 million deal with Aston Martin to provide motors and battery technology for its first hybrid and electric vehicles. Under the agreement, Lucid will manufacture the components at its Arizona facility before shipping them to Aston Martin’s production sites. While this partnership involves supplying parts, Rawlinson emphasized that his long-term strategy is to license technology to larger automakers, allowing them to manufacture the hardware in their own factories under license—with one key condition.

He explained that the licensing model would rely on Lucid retaining control over its software, likening it to Microsoft’s business model. Just as Microsoft charges royalties when users install its software, Lucid would maintain control over the encrypted software flash essential for its technology to function, ensuring a continuous revenue stream.

Lucid’s Cars as Technology Showcases

Despite the push for licensing, Lucid’s vehicles remain crucial to its strategy. Rawlinson views models like the Lucid Air and the upcoming Lucid Gravity SUV as showcases for the company’s cutting-edge technology. These premium EVs, with some trims exceeding $100,000, serve as high-performance demonstrations of Lucid’s capabilities. The Air, for instance, was the first EV to exceed 500 miles on a single charge, highlighting Lucid’s expertise in battery efficiency.

Rawlinson acknowledged that some have questioned why Lucid didn’t solely focus on supplying technology. He explained that the company needed its own vehicles to demonstrate its innovations and establish credibility in the industry. By maximizing efficiency in its battery packs, Lucid continues to offer some of the longest-range EVs on the market, along with impressive performance—evident in the 1,234-horsepower Lucid Air Sapphire.

Positioning Lucid for the Future

When discussing the broader EV landscape and the impact of current political and economic conditions, Rawlinson remained confident that Lucid’s approach would keep it ahead of the competition. He suggested that while some automakers are slowing their electrification plans, Lucid is positioning itself to capitalize on a future shift back toward sustainability. He predicted that in a few years, as the industry recognizes the necessity of transitioning to clean transportation, Lucid will be well-positioned to license its technology to companies that failed to invest in EV innovation earlier.

With this strategy in place, Lucid maintains the flexibility to generate revenue through both vehicle sales and technology licensing. However, the success of this plan will depend on whether major automakers commit to licensing deals at a time when many are re-evaluating their EV investments.

Have you read?
Richest Billionaire Investors.
Billionaire Winners.
Billionaire Losers.
Best Business Schools.
Best Hotel Schools.