What Happened?
Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) jumped 9.6% in the morning session after the company announced it has officially closed a $300 million strategic investment from Uber Technologies.
The funding finalizes a partnership between the two companies to develop a next-generation premium global robotaxi program. This collaboration combines Lucid's advanced electric vehicle technology with Uber's extensive ride-hailing network. The robotaxis are planned to be built at Lucid's manufacturing facility in Arizona and will operate exclusively on Uber's platform. The program aims to deploy over 20,000 Lucid vehicles over six years. This move marks a significant step into the future of autonomous ride-sharing, with the new service expected to launch late next year in a major U.S. city.
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What Is The Market Telling Us
Lucid’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 8% on the news that negative investor sentiment persisted following the company's recent 10-for-1 reverse stock split.
The decline is a continuation of the previous day's slide, which began after the split took effect. A reverse stock split consolidates the number of existing shares to increase the per-share price, a move that traders and the market often view as a sign of weakness or an attempt to avoid delisting from a major stock exchange. The stock is now down more than 15% since Tuesday's open. The move comes as Lucid continues to operate deep in the red, adding to investor concerns about the electric vehicle maker's financial health.
Lucid is down 40.9% since the beginning of the year, and at $17.90 per share, it is trading 55% below its 52-week high of $39.80 from September 2024. Investors who bought $1,000 worth of Lucid’s shares at the IPO in September 2020 would now be looking at an investment worth $180.99.
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