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Lucid (NASDAQ:LCID) is in the spotlight after airline startup Riyadh Air announced that it had signed memorandum of understanding (MOU) with the electric vehicle (EV) company. The announcement was made at the Dubai Airshow and will encompass marketing, commercial and operational collaborations between the two companies.
At the airshow, Riyadh unveiled two Lucid Airs wrapped in the company’s livery, or design, to symbolize the partnership. Riyadh believes that partnering with Lucid strengthens its goal of sustainable energy practices.
“Who would have launched a car partnership at an airshow?” said Riyadh CEO Tony Douglas “It’s Riyadh Air, of course.”
LCID Stock: Lucid Signs Deal With Riyadh Air
The exact terms of the MOU are unclear, although it appears as of now that the two companies will collaborate mainly on marketing opportunities. Riyadh plans on becoming operational in 2025 and has a goal of 330 million travelers by 2030. That would open up a lot of eyes to Lucid if the goal is achieved.
Meanwhile, Lucid has released a slew of press releases this month. On Nov. 6, the company announced that it would adopt Tesla’s (NASDAQ:TSLA) North American Charging Standard (NACS). Starting in 2025, all Lucid vehicles will be equipped with the charging standard. In 2025, an adapter will also be provided to vehicles equipped with the current Combined Charging System (CCS).
“Adopting NACS is an important next step to providing our customers with expanded access to reliable and convenient charging solutions for their Lucid vehicles,” said CEO and Chief Technology Officer Peter Rawlinson. “We believe that a unified charging standard, backed by the nationwide rollout of future-ready higher-voltage charging stations, will be a critical step in empowering American consumers to adopt electric vehicles.”
The next day, on Nov. 7, Lucid also reported its third-quarter earnings, which disappointed shareholders. The EV company revised its 2023 production guidance to between 8,000 and 8,500 vehicles from the prior estimate of 10,000 vehicles. During the quarter, Lucid delivered 1,457 vehicles which resulted in revenue of $137.8 million. Lucid also added that its new Gravity vehicle will be on display at the LA Auto Show on Nov. 16. Production of the vehicle is expected to begin in late 2024.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
