Lucid (LCID) shares are up more than 40% at the time of writing after Uber Technologies (UBER) said it will invest $300 million in the EV maker as part of a broader robotaxi agreement signed today.
Uber will also invest in Nuro, an autonomous technology startup that will equip LCID vehicles with self-driving capabilities
These vehicles will then be delivered to the ride-hailing giant as robotaxis over the next six years. Note that Lucid stock is still down some 13.5% versus its year-to-date high set in February.
Lucid shareholders are cheering the news primarily because it positions the automaker at the center of Uber’s long-term robotaxi strategy.
A $300 million investment not only boosts LCID’s financial runway, but validates its technology and manufacturing capabilities as well.
Partnering with Nuro for autonomous integration adds future-facing value, while the commitment to deliver more than 20,000 robotaxis over six years ensures sustained demand.
LCID shares are rallying this morning because it’s not just a one-off deal – it’s a multi-year pipeline of revenue, visibility, and relevance in the autonomous mobility space.
For investors, it signals strategic traction and credible path toward scaled commercial deployment.
While the UBER announcement sure is positive for Lucid shares, it may not be sufficient to warrant loading up on the EV stock at current levels, according to Bank of America analysts.
On Thursday, the investment firm reiterated its “Underperform” rating and $1 price target on the automaker, indicating potential for over 65% downside from here.
According to the BofA experts, increased tariffs under President Donald Trump and a deceleration in product development following the departure of Peter Rawlinson as chief executive this year could weight on LCID stock.
Additionally, slowing demand for electric vehicles at large remains a major overhang on Lucid as well, they told clients in a research note today.
While not nearly as bearish as Bank of America, other Wall Street analysts are not comfortable with Lucid stock’s current valuation either.
The consensus rating on LCID shares currently sits at “Hold” only with the mean target of $2.84 signalling potential for a steep decline of more than 15% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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