Lucid Group (LCID): Assessing Valuation After Landmark Uber Partnership and Gravity SUV Deal

Lucid Group (LCID) has once again grabbed investor attention, this time riding the wave of a newly announced partnership with Uber to supply 20,000 Gravity SUVs for Uber’s autonomous taxi program. The $300 million investment from Uber is not just a hefty headline number; it signals a real-world endorsement of Lucid’s electric vehicle technology and long-term aspirations in the evolving robotaxi space. For anyone trying to decide what to do next with Lucid stock, this strategic deal may seem like a signal that the company is stepping up not just in product innovation, but also in its credibility with major industry partners.

Despite a rocky year marked by a sharp drawdown, with Lucid shares still well below their highs for the year, the Uber announcement has helped drive a recent rebound in the stock price. Positive momentum has replaced some of the gloom, with a shift in sentiment following the debut of the Gravity SUV and ongoing buzz about Lucid’s partnerships and growth plans. Still, with the company continuing to post losses and the Uber deal unfolding over several years, the market appears split between believers in Lucid’s long-term vision and skeptics focused on execution risks and persistent negative margins.

After this bounce, are investors looking at a savvy entry point before Lucid accelerates into a new era, or is the optimism on display simply reflecting all of the future growth already priced in?

Most Popular Narrative: 3.5% Undervalued

According to the most widely followed analyst consensus, Lucid Group is considered modestly undervalued based on projections for strong revenue growth and future profit margin improvement, using a discount rate of 12.32%.

The newly announced Uber and Nuro partnership, including a planned $300 million Uber investment and a commitment to deploy at least 20,000 Lucid Gravity vehicles as robotaxis over six years, is expected to open a large and fast-growing autonomous fleet market to Lucid. This could drive significant revenue expansion and potential margin improvement through technology licensing and high-volume fleet sales.

Eager to know what's really fueling this bullish narrative? The secret sauce isn't just about a big-name partnership or a shiny new EV. It centers on ambitious growth forecasts and a future profit multiple that would turn any investor's head. If you want a peek at the pivotal financial leaps analysts are banking on, this is a story you can’t afford to ignore.

Result: Fair Value of $23.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent negative gross margins and reliance on external capital could quickly unravel Lucid’s bullish scenario if these issues are not addressed in the coming quarters.

Find out about the key risks to this Lucid Group narrative.

Another View: Industry-Based Comparison Tells a Different Story

While analysts see upside in Lucid’s price, a look at its revenue compared to the industry reveals the stock is much pricier than other automakers on this measure. Could excitement be outpacing fundamentals?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Lucid Group to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Lucid Group Narrative

If you see things differently or want to run the numbers for yourself, it’s easier than you might think to build your own Lucid thesis in just a few minutes. Do it your way.

A great starting point for your Lucid Group research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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