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Ford reportedly approached to buy California EV startup

According to a report in Automotive News, California electric vehicle startup Lucid approached Ford about an acquisition while raising Series D funding.

Lucid Air
Lucid Motors intends to produce the Air electric sedan in 2018.
Wayne Cunningham/CNET Roadshow

California-based electric vehicle startup Lucid Motors suggested an acquisition by Ford, according to an article in Automotive News. The bid for a buyout reportedly occurred while Lucid is seeking investment to get its planned Arizona manufacturing plant up and running.

Lucid calls its first car the Air, and intends to begin manufacturing this electric sedan in 2018.

The Air would give Tesla's Model S healthy competition. The sedan is designed to take advantage of the compact nature of electric drive components, providing the interior space of a large luxury sedan in a smaller vehicle. At the same time, Lucid is claiming 1,000 horsepower and over 300 miles of range. It recently tested a prototype at 235 mph. Lucid has already said it would sell the Air sedan for $60,000.

Developing and manufacturing a new vehicle takes deep pockets, and Lucid is currently in its fourth round of fundraising, which it needs to build its proposed Arizona manufacturing facility. Automotive News relied on anonymous sources to report that personnel from Lucid suggested the acquisition to Ford executives. However, that approach was rebuffed, as Ford's new CEO, Jim Hackett, is currently reviewing his company's operations.

Lucid's last round of funding raised $100 million in 2014. The first phase of construction for Lucid's new manufacturing facility will cost $240 million, with the total coming to $700 million.

Editor's note: This article has been updated to give further detail on the cost of Lucid's manufacturing facility.