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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Lucid (LCID) Stock Trades Up, Here Is Why

LCID Cover Image

What Happened?

Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) jumped 39% in the afternoon session after the company announced a major partnership with Uber (NYSE: UBER) and autonomous vehicle company Nuro to launch a global, premium robotaxi program. 

The collaboration will integrate Lucid's electric vehicles with Nuro's Level 4 autonomous driving system, making them available exclusively on Uber's ride-hailing platform. The ambitious plan aims to deploy 20,000 or more of these autonomous Lucid vehicles over the next six years, with the first launch expected in a major U.S. city next year. This strategic alliance is a significant vote of confidence in Lucid's vehicle technology. As part of the deal, Uber plans to make multi-hundred-million dollar investments in both Lucid and Nuro. For Lucid, this partnership opens up a substantial new revenue stream and a direct path into the burgeoning autonomous ride-sharing market, leveraging Uber's massive global network. The deal combines Lucid's vehicle design, Nuro's self-driving tech, and Uber's fleet management to create a purpose-built robotaxi experience.

Is now the time to buy Lucid? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Lucid’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. But moves this big are rare even for Lucid and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 3.3% on the news that the company announced a major update to its DreamDrive Pro suite of Advanced Driver Assistance Systems (ADAS). 

The electric vehicle maker introduced "Hands-Free Drive Assist" and "Hands-Free Lane Change Assist" to its lineup. These new features will be rolled out via an over-the-air (OTA) software update, scheduled for July 30 for Lucid Air owners and later this year for the new Gravity SUV. 

The update is a significant step in the company's technology roadmap, as Lucid continues to invest heavily in its in-house software and ADAS capabilities to compete in the crowded EV market. The DreamDrive Pro system utilizes a comprehensive suite of 32 sensors, including LiDAR, radar, and cameras, to enable these new hands-free functions on compatible highways.

Lucid is up 4.9% since the beginning of the year, but at $3.18 per share, it is still trading 25.4% below its 52-week high of $4.26 from August 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 $321.53.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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