Lucid Motors Faces Ongoing Trademark Dispute Over Gravity SUV

Mar 13, 2024 12:21 AM EDT

ROAD MOTORWAY FREEDOM EVENING — (Photo : PIXABAY/ tookapic)

A competitor electric car startup has filed a trademark action against Lucid Motors for using the "Gravity" moniker, which is seriously impeding the much-anticipated manufacture of the company's SUV, the Gravity. Google Ventures has sponsored this startup. This information presents Lucid with even greater obstacles as it looks to establish a presence in the very competitive EV market. The company's financial losses and lower production estimates make the Gravity SUV's performance even more important in the face of these obstacles.

Trademark Dispute: Lucid Motors' Gravity SUV

When the much-anticipated Gravity SUV was unveiled in November 2023, Lucid Motors grabbed headlines. As reported in Benzinga, a trademark battle has marred the company's joyous occasion. This challenge arises during a challenging period for Lucid Group, marked by stock price fluctuations and adjustments in production and delivery forecasts.

The trademark clash with EV charging company Gravity Technologies, supported by Alphabet Inc, poses another potential hurdle for Lucid amidst its technological acclaim. In a recent development reported by TechCrunch, Gravity Inc., a Google Ventures-backed EV charging company, has taken legal action by filing a "petition for cancellation" with the U.S. Patent and Trademark Office's Trademark Trial and Appeal Board (TTAB) in December.

The petition aims to challenge Lucid's use of the Gravity trademark, citing potential consumer confusion due to the shared name with Gravity Inc.'s EV charging services and previous operation of an EV taxi fleet. As Lucid faces challenges in customer acquisition, the impending launch of the Gravity SUV carries even greater significance, given the company's $2.8 billion loss in 2023 and its projection to produce only around 9,000 cars in 2024 after once predicting ten times that amount.

Lucid Motors has contested the petition, expressing concerns to investors in its annual filing with the Securities and Exchange Commission about the potential financial impact of such legal disputes on maintaining the goodwill associated with the Gravity SUV trademark.

The company's spokesperson refrained from providing additional comments beyond what was disclosed in the filings with the TTAB. In recent years, Gravity Inc. has engaged in developing cutting-edge fast-charging stations for electric vehicles, according to an article on TechCrunch.

The business recently debuted its first flagship site in New York City. In late 2021, the company began operating an electric taxi fleet in the city. The Taxi and Limousine Commission (TLC) oversaw this pilot operation. Among the cars in the fleet are the Mustang Mach-E and the Tesla Model Y SUV.

A TLC representative who spoke with TechCrunch stated that one of Gravity's taxis is still in service. Despite the fact that the TLC pilot program ended in 2023, the startup was able to secure its trademark for the use of the word Gravity in 2017.

This trademark was for "transportation services, namely, hired car transport; passenger transport; taxi and limousine transport," as well as "computer software and downloadable software in the nature of a mobile application for coordinating transportation services, namely, software for the automated scheduling and dispatch of motorized vehicles."

The Impact

As the anticipated production date for the Gravity SUV approaches, Lucid Motors faces the added pressure of the ongoing trademark dispute. This vehicle holds significant promise for Lucid amidst its current challenges.

Despite expressing confidence in prevailing against the petition, the company has cautioned investors about the potentially costly impact of such challenges on its trademarks. With Lucid's stock experiencing a substantial decline and adjusted vehicle production projections, the company is navigating through a turbulent period as it strives to overcome various obstacles.