Lucid Motors Holds Takeover Talks With Ford, Sale Possible

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Lucid Motors is pondering a possible sale to Ford while in the midst of a new round of financing.

Automotive News reports that the electric start-up has recruited Morgan Stanley to help raise the money required to make its Air luxury sedan a production reality.

Unnamed sources close to the matter assert that Lucid approached senior management at Ford about a potential sale but that the automaker isn’t looking at a deal at this stage, largely because new chief executive Jim Hackett is still conducting a 100-day review of the brand’s plans and priorities.

Speaking to the press at April’s New York Auto Show, Lucid chief technology officer Peter Rawlinson admitted that the company didn’t yet have enough money to start construction of its proposed $700 million factory in Arizona.

“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,” he said.

In a statement, Ford said it doesn’t comment on speculation but one source says the company hasn’t ruled out a deal down the road.