Lucid Motors has made a name for itself in the electric vehicle (EV) industry, winning awards and accolades for its cutting-edge technology and performance. However, according to CEO and CTO Peter Rawlinson, the company’s true ambition extends far beyond manufacturing cars. Lucid aims to become the “Intel Inside” of the automotive world, licensing its powertrain and battery technology to other automakers and shifting from a carmaker to a tech supplier.
A Vision Beyond EV Manufacturing
In a recent interview with InsideEVs, Rawlinson outlined his vision for Lucid’s future. He envisions a model where only 20% of the company’s business is dedicated to building cars, while 80% revolves around licensing its advanced EV technology.
“I’d love it to be 20-80,” said Rawlinson. “Twenty percent are doing cars, and 80 percent are 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.”
The analogy to Intel is significant. The chip giant supplies processors to nearly every major PC brand, creating a ubiquitous presence without directly manufacturing computers. Lucid wants to follow a similar path, positioning itself as the go-to supplier of high-performance EV components for mass-market and luxury automakers alike.
Why Licensing Makes Sense for Lucid
The EV industry is still evolving, with consumer demand, regulatory shifts, and infrastructure developments all playing unpredictable roles. For legacy automakers struggling to transition from internal combustion engines to EVs, Lucid sees an opportunity. Instead of spending billions on R&D, car manufacturers could license Lucid’s industry-leading powertrain and battery systems, gaining access to top-tier technology without the upfront investment.
Lucid has already tested the waters in this space. The company previously supplied battery technology to Formula E racing and recently inked a deal with Aston Martin. Under the agreement, Lucid will provide motors, battery packs, and its proprietary Wunderbox charging system for Aston Martin’s upcoming electric vehicle. Currently, Lucid manufactures these components in its Arizona facility before shipping them to Aston Martin in the U.K. However, Rawlinson hopes to shift toward a true licensing model, where automakers manufacture the hardware themselves while relying on Lucid’s software to make it function.
The Software Lock-in Strategy
Rawlinson’s vision goes beyond just selling hardware. He wants to control the software that powers it, ensuring ongoing revenue and technological dependence.
“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 explained. “You flash your Microsoft Office—ka-chunk—Bill Gates gets his royalty, doesn’t he? And I want to be like that.”
By adopting this approach, Lucid could generate continuous revenue streams, similar to how software companies operate through licensing fees. This strategy could give Lucid a competitive edge in an industry where profit margins on hardware are typically thin.
A Dream or a Realistic Future?
Despite the ambitious roadmap, Rawlinson is cautious about making guarantees. “I’m not making any promises,” he admitted. “And the reason that is not baked into our financials is I can’t guarantee that any of that’s going to happen.”
While the vision of becoming the Intel of EVs is compelling, it remains to be seen whether automakers will embrace Lucid’s licensing model at scale. If successful, this strategy could future-proof Lucid and reshape the automotive industry’s approach to EV technology. But for now, the company is still in its early days of executing this bold pivot.
