TLDR
- Lucid stock jumped over 30% after announcing partnership with Uber and Nuro to deploy 20,000 Gravity SUVs for autonomous ride-hailing over six years
- Uber’s subsidiary investing $300M in Lucid through private placement with 18-month lock-up period, showing long-term commitment
- Benchmark analyst raised price target from $5 to street-high $7, representing 130% potential upside from current levels
- Company proposed 1-for-10 reverse stock split to attract institutional investors, with shareholder vote scheduled for August 18
- New features including Hands-Free Drive Assist will be available starting July 30 for Lucid Air vehicles with DreamDrive Pro
Lucid Group stock experienced its best day in years last Thursday, surging over 30% following news of a game-changing partnership. The luxury EV maker announced a collaboration with Uber and autonomous vehicle startup Nuro to deploy 20,000 Gravity SUVs over the next six years.
The deal represents more than just a vehicle order. Uber’s subsidiary, SMB Holding, is investing $300 million in Lucid through a private placement. The investment price will be based on LCID’s 30-day average, with an 18-month lock-up period attached.
The first autonomous vehicles could hit the road as early as 2026. Final deal terms are expected to be announced later this quarter. A working prototype is already undergoing tests at Nuro’s Las Vegas facility.
Benchmark analyst Mickey Legg views the partnership as a clear strategic win. He praised the deal for bringing in capital and two world-class partners while expanding Lucid’s reach into autonomous ride-hailing.
The partnership positions Lucid at the forefront of what management sees as a multi-trillion-dollar market opportunity. Uber facilitates 34 million daily trips across over 70 countries, giving Lucid immediate global exposure without operating its own fleet.
Vehicles will be owned by Uber or its partners and fully integrated into the Uber app. This arrangement removes operational burdens from Lucid while maximizing their technology’s reach.
Financial Impact and Market Response
Legg called the initiative a validation of the Gravity platform that broadens Lucid’s commercial strategy. He sees enhanced monetization opportunities for the company’s proprietary technology.
The analyst boosted his price target from $5 to a street-high $7. This represents potential 130% upside from current levels and earned LCID shares a Buy rating from Benchmark.
However, Legg’s optimism contrasts sharply with broader analyst sentiment. Most remain cautious about Lucid’s prospects despite the recent partnership news.
The stock carries 8 Hold recommendations and 1 Sell rating alongside Legg’s Buy. This results in a consensus Hold rating across Wall Street analysts.
At $2.92, the average price target suggests shares will remain range-bound in the near term. Only Legg’s bullish $7 target stands out from the pack.
Corporate Developments and Technology Updates
Lucid announced a proposed 1-for-10 reverse stock split to make shares more attractive to institutional investors. Shareholders will vote on the proposal during an August 18 meeting.
Legg called the reverse split a prudent step given recent operational progress and renewed investor interest. The move could help the stock meet institutional investment thresholds.
The company has been expanding its service infrastructure with a new studio and delivery center opening in New Jersey. This facility will serve local customers and support the company’s growth strategy.
Lucid also formed a strategic partnership with King Abdullah University of Science and Technology in Saudi Arabia. The collaboration focuses on advancing EV technology leadership and developing autonomous driving systems.
Starting July 30, Lucid will make Hands-Free Drive Assist and Hands-Free Lane Change Assist features available for Air vehicles equipped with DreamDrive Pro.
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