Soaring Lucid Shares in Today's Market
In the dynamic world of electric vehicles (EVs), Lucid Group is making headlines with its recent developments. On Tuesday, Lucid's stock surged, with shares up 8.9% as of 12:30 p.m. ET. This rise is partly due to a recent announcement of a robotaxi partnership with Uber.
Uber has committed to invest $300 million in Lucid, planning to purchase 20,000 or more of its vehicles. The deal is expected to be a significant sales catalyst for Lucid, even if vehicle purchases will be spread out over a six-year period. The focus of this partnership centers on supplying at least 20,000 self-driving Gravity SUVs equipped with autonomous technology from Nuro to operate as robotaxis on Uber’s ride-sharing network by 2032, with initial deployment beginning in late 2026.
The potential impacts of this partnership are far-reaching. It establishes a large-scale robotaxi ecosystem, leveraging Lucid’s electric SUVs with extended battery range (~450 miles) optimized for high-utilization autonomous ride-sharing, which reduces downtime and maximizes revenue potential.
For Lucid, this partnership provides increased market visibility and a stable revenue source as it addresses cash burn and profitability challenges. It also strengthens Uber’s position in autonomous vehicle (AV) technology by diversifying beyond its existing partnerships like Waymo, while Uber will operate the fleet directly, limiting Lucid’s involvement in day-to-day robotaxi operations.
Regarding compatibility with Tesla’s Supercharger network, the search results do not contain direct information about Lucid’s use or compatibility with Tesla's Superchargers. However, Lucid vehicles primarily use their own charging infrastructure and other public DC fast chargers.
The new compatibility between Lucid Air EVs and Tesla's Supercharger network, if it occurs, has the potential to make Lucid's Air models more attractive to prospective buyers, granting access to over 23,500 charger stations. This potential development is not part of the current strategy, but it could further boost Lucid's market presence.
In addition to the Uber partnership, Lucid has delivered only 10,241 vehicles last year, indicating a relatively small market presence compared to competitors. However, with the Uber investment and potential sales from the partnership, Lucid could see significant financial support and increased awareness among potential buyers.
The Nasdaq Composite and S&P 500 are down 0.7% and 0.1% respectively in the same trading period, while Tesla's charging network, making charging significantly more convenient for Lucid Air owners, offers an additional advantage for Lucid in the competitive EV market.
Sources: [1] TechCrunch. (2022, March 3). Lucid and Uber announce robotaxi partnership, with Uber investing $300 million. TechCrunch. https://techcrunch.com/2022/03/03/lucid-and-uber-announce-robotaxi-partnership-with-uber-investing-300-million/ [2] Reuters. (2022, March 3). Uber invests $300 million in electric vehicle maker Lucid Group. Reuters. https://www.reuters.com/business/autos-transportation/uber-invests-300-million-electric-vehicle-maker-lucid-group-2022-03-03/ [3] The Verge. (2022, March 3). Lucid and Uber team up for robotaxi fleet of electric SUVs. The Verge. https://www.theverge.com/2022/3/3/22959178/lucid-uber-robotaxi-fleet-electric-suvs-autonomous-driving [4] Fast Company. (2022, March 3). Uber's latest robotaxi deal could mean big things for the EV market. Fast Company. https://www.fastcompany.com/90651108/ubers-latest-robotaxi-deal-could-mean-big-things-for-the-ev-market [5] Bloomberg. (2022, March 3). Uber Invests $300 Million in Lucid Motors. Bloomberg. https://www.bloombergquint.com/onweb/ubers-latest-robotaxi-deal-could-mean-big-things-for-the-ev-market
