Hyundai Motor Company (OTCPK: HYMTF) is reportedly considering a partnership with California-based Lucid Group (NASDAQ:LCID) for its high-performance electric motor.

What Happened: Hyundai CEO Chang Jae-hoon visited Lucid's headquarters in California early this year to discuss cooperation, South Korea's Sisa Journal reported.

The two companies are figuring out the details of the contract including motor pricing and the models they will be incorporated into, the report said, while hinting that the motor might be incorporated into an all-electric sports car by Hyundai's luxury brand Genesis. However, Hyundai did not confirm the news.

In June 2023, Lucid entered into a similar partnership with Aston Martin to integrate and supply Lucid's electric vehicle powertrain and battery systems to the British car maker.

Why It Matters: Lucid's Air sedan is currently the only one in production. The sedan has a maximum estimated range of up to 516 miles, making it among the longest-range electric vehicles around the globe.

For the first quarter, Lucid reported a net loss of $680.9 million and revenue of just $172.7 million. The company accumulated a net loss of over $346,000 for every vehicle it delivered.

However, as of the end of the first quarter, Lucid had total liquidity of about $5.03 billion, which the company expects will be enough to sustain it through the start of production of the Gravity SUV and into the second quarter of 2025.

Last week, the company announced that it laying off about 6% of its workforce, or 400 employees to reduce costs.