Why Lucid Group (LCID) Is Up After Robotaxi Partnership With Uber and Nuro and Plans for Affordable SUV

• Uber and autonomous vehicle specialist Nuro recently announced a partnership with Lucid Group to deploy at least 20,000 autonomous Gravity SUV robotaxis in the U.S. over six years, with Lucid also planning to launch a more affordable SUV model in 2026.
• This move marks Lucid's expanded push into the autonomous mobility market at a time of intense competition and leadership shifts within the company.
• We'll examine how Lucid's entry into the robotaxi market through the Uber and Nuro partnership could influence its investment outlook.

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Lucid Group Investment Narrative Recap

To be a Lucid Group shareholder, you typically need to believe in the company’s ability to scale electric vehicle deliveries, move toward profitability, and establish a meaningful foothold in the emerging autonomous mobility space. The Uber and Nuro partnership, while a headline-maker, is not expected to materially change Lucid’s most immediate challenge: sustaining vehicle production growth and reducing negative margins, especially as unprofitability and cash burn remain key short-term risks.

One related development is Lucid’s recent deliveries of the Gravity SUV in Canada, supporting the rollout of the same model earmarked for the Uber and Nuro robotaxi fleet. This move demonstrates Lucid’s execution on expanding vehicle production capacity, a crucial step, but not a guarantee, toward addressing the earnings pressures and delivery targets that are central to the company’s near-term outlook.

Yet, with production targets and cash burn top of mind, investors should not overlook the continuing risk of dilution in the months ahead…

Read the full narrative on Lucid Group (it's free!)

Lucid Group's narrative projects $5.6 billion revenue and $285.8 million earnings by 2028. This requires 82.4% yearly revenue growth and a $3.4 billion earnings increase from current earnings of -$3.1 billion.

Uncover how Lucid Group's forecasts yield a $23.79 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Fifteen members of the Simply Wall St Community have set fair value estimates for Lucid ranging from as low as US$0.53 to US$23.79 per share. While these views are diverse, ongoing losses and the challenge of scaling deliveries raise fundamental questions about Lucid’s path to profitability and future performance.

Explore 15 other fair value estimates on Lucid Group - why the stock might be worth less than half the current price!

Build Your Own Lucid Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lucid Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Lucid Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lucid Group's overall financial health at a glance.

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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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