Lucid Gains Momentum with Major Uber Partnership and European Expansion

Lucid Group shares climbed 5.2% to close at $19.35, fueled by two significant developments: a substantial $300 million investment from Uber and the official European debut of its Gravity SUV.

Strategic Uber Alliance Advances Autonomous Vehicle Plans

On September 4, ride-hailing leader Uber formalized a major partnership with Lucid Group through a $300 million investment. This capital infusion solidifies a previously announced initiative to deploy a fleet of autonomous vehicles. Uber intends to put at least 20,000 Lucid Gravity SUVs equipped with Nuro’s Level 4 autonomous driving technology into service over the coming six years. This collaboration serves as a powerful endorsement of Lucid’s electric vehicle platform and unlocks substantial new revenue streams beyond its core consumer business. Production of these vehicles will occur at Lucid’s manufacturing facility in Arizona.

European Market Entry with Premium SUV

Coinciding with the Uber announcement, Lucid is executing its European growth strategy. The company officially unveiled the Gravity SUV at the IAA Mobility show in Munich on September 8. Orders for the Grand Touring variant are now open, with initial deliveries scheduled to commence in early 2026. The model will start at €116,900 in the German market. Furthermore, Lucid confirmed development plans for a third vehicle—a midsize electric car. Based on the Gravity-X concept and targeting a price point around $50,000, this future model positions Lucid to compete directly with Tesla’s Model 3 and Model Y.

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Navigating Post-Reverse Split Volatility

These positive announcements follow a period of significant volatility for the electric vehicle manufacturer. A 1-for-10 reverse stock split took effect on September 2, a move designed to attract institutional investors and maintain exchange listing requirements. After an initial decline of 10.1% to a split-adjusted record low of $17.36, the stock demonstrated a strong recovery, surging 13.83% on September 5. This recent upward movement occurs alongside a notable erosion of market share by industry leader Tesla, a trend that may benefit competing automakers like Lucid.

Despite these strategic advances, fundamental financial challenges remain. For the second quarter of 2025, Lucid reported production of 3,863 vehicles and deliveries of 3,309 units, representing a 38.2% increase from the same period last year. However, the company also posted a net loss of $739.3 million. Management has slightly revised its full-year 2025 production guidance downward to a range of 18,000-20,000 vehicles. Lucid continues to manage a high cash burn rate and remains reliant on financial backing from its majority stakeholder, Saudi Arabia’s Public Investment Fund.

Investor attention now turns to appearances by Interim CEO Marc Winterhoff and CFO Taoufiq Boussaid at the Morgan Stanley conference on September 12. The current average analyst price target for Lucid shares stands at $23.31, with recent assessments from Stifel and Cantor Fitzgerald setting targets of $21.00 and $20.00, respectively. The company is expected to report its third-quarter financial results in November.