I briefly mentioned this idea in another forum, but I'd like to expand on why I think it makes so much sense for Apple to acquire Lucid. I'm not an investment banker and I don't directly own stock in either company. This is just hypothetical on my part. I'll lay out the argument and would love to hear what others think. Here are my reasons in no particular order:
1. Apple has tried (and failed) at building a self-driving car with 'Project Titan'. The interest has been there from a strategic standpoint, but the execution didn't work out. Lucid is already up and running and its vehicles have all the requisite hardware in place (lidar, radar, ultrasonic sensors, cameras) as well as DreamDrive Pro.
2. Four other companies in the U.S. are actively testing robo-taxis (Uber, Zoox/Amazon, Waymo/Google and Tesla).
3. Xiaomi, primarily known as a Chinese consumer electronics company, and a competitor to Apple, is now building incredible cars that are tightly integrated with their devices. Here's a review from yesterday by Marques Brownlee -
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4. Apple is often a late entrant, and looks to improve upon first mover tech (mp3 players>iPod, wireless headphones>AirPods, mobile devices>iPhone, smart watches>Apple Watch etc.) but companies like Tesla have been refining their hardware and software for over a decade, so if Apple is going to act, the time is now.
5. Lucid is based in the U.S., not far from Apple (24 miles), and has its main factory in AZ. Proximity is a plus. Made in the USA is a plus.
6. Lucids are really great cars, that have amazing hardware engineering, but need better quality control and more reliable software. Apple can easily fulfill those needs (and you can bet CarPlay would work flawlessly). Plus, Apple has world-class product design skills to complement Lucid's.
7. Lucid's enterprise value is $5.3 billion, which, given Apple's cash reserves, is not much even when factoring in a buyout premium. For reference, Apple paid $3 billion ($4.11 billion in today's dollars) to buy Beats by Dre in 2014. Of course, post-purchase, Lucid will require further investment, which is still quite feasible given Apple's deep pockets.
8. Apple's brand would have an immediate halo effect on Lucid's brand.
9. Amazon, another competitor, has a 17% stake in Rivian.
10. The Saudi Public Investment Fund is having challenges with its portfolio and may be looking for an off-ramp in its investment in Lucid rather than having to put more money into the company and no near term prospects of profitability -
https://www.nytimes.com/2025/11/19/business/pif-saudi-arabia-fund-problems.html
11. Bonus Reason - Tesla's enterprise value is $1.4 trillion, which shows that there's enormous upside for Apple if they get it right.
