Lucid stock rises as Stifel reiterates Hold rating amid Uber partnership

Published 17/07/2025, 18:10
Lucid stock rises as Stifel reiterates Hold rating amid Uber partnership

Investing.com - Lucid Group Inc . (NASDAQ:LCID) shares gained after Stifel maintained its Hold rating and $3.00 price target on the electric vehicle manufacturer. Trading at $3.21, the stock currently appears slightly overvalued according to InvestingPro analysis, which reveals a "Fair" overall financial health score.

Lucid announced a major partnership with Uber (NYSE:UBER) and autonomous vehicle developer Nuro to create a robotaxi service. The collaboration will utilize Lucid’s electric vehicle architecture combined with Nuro’s Level 4 self-driving technology and Uber’s global network and fleet management expertise. With a solid current ratio of 3.32 and more cash than debt on its balance sheet, Lucid appears well-positioned to fund this initiative.

The partnership aims to deploy its first autonomous vehicle by late 2025, with plans to scale to at least 20,000 self-driving-enabled Lucid vehicles over the next six years. Uber or its third-party fleet operators will directly own and operate these vehicles.

As part of the agreement, Uber committed to purchase $300 million worth of Lucid common shares through a private placement, while also making an undisclosed investment in Nuro. Additionally, Lucid’s Board approved a 1:10 reverse stock split, pending shareholder approval.

Stifel views Lucid’s entry into the robotaxi market as potentially yielding material long-term value for the company, while noting that the autonomous driving sector remains in the "prove-it-to-me" stage with various companies employing different software and hardware architectures. Despite revenue growth of 40.67% over the last twelve months, InvestingPro analysis highlights significant challenges, including weak gross profit margins and rapid cash burn. Discover 10+ additional exclusive insights and detailed financial metrics with an InvestingPro subscription.

In other recent news, Lucid Group, Inc. announced it has filed a preliminary proxy statement with the Securities and Exchange Commission regarding a proposed one-for-ten reverse stock split. The company is seeking shareholder approval to implement this reverse split, which is intended to make its common stock more appealing to a broader range of investors. Additionally, Lucid has partnered with Uber Technologies, Inc. and Nuro, Inc. to launch a global robotaxi program, planning to deploy at least 20,000 autonomous vehicles over the next six years. This collaboration will integrate Lucid’s vehicle architecture with Nuro’s autonomous technology and Uber’s ride-hailing network.

Lucid also unveiled plans to update its DreamDrive Pro advanced driver assistance system to include hands-free driving capabilities, set to roll out for Lucid Air owners on July 30. The update will feature Hands-Free Drive Assist and Hands-Free Lane Change Assist, enhancing the company’s offerings in the premium electric vehicle market. Meanwhile, Lucid delivered 3,309 vehicles in the second quarter of 2025, which fell short of analyst expectations but marked an improvement over the same period last year. Cantor Fitzgerald maintained a Neutral rating on Lucid stock, citing the mixed delivery data. Despite these delivery figures, Lucid’s full-year production guidance for 2025 remains unchanged at 20,000 vehicles.

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