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Lucid stock pops 43% after Uber announces robotaxi. What to know about the Tesla rival

Lucid Motors Stock Surges Amid Uber Robotaxi Partnership Buzz, Positioning It as a Formidable Tesla Rival

In a surprising turn of events that's sending ripples through the electric vehicle (EV) and autonomous driving sectors, Lucid Motors has seen its stock price skyrocket following reports of a potential collaboration with Uber on robotaxi technology. This development comes at a time when Tesla, the undisputed leader in the EV space, is facing delays in its own robotaxi ambitions, creating an opening for rivals like Lucid to gain ground. Investors are betting big on Lucid's innovative battery technology and luxury EV lineup, which could play a pivotal role in the burgeoning robotaxi market.

The stock surge began early Thursday morning, with Lucid shares jumping more than 15% in pre-market trading before settling at around a 12% gain by midday. This boost propelled the company's market capitalization past the $10 billion mark, a significant milestone for the Newark, California-based automaker that's been navigating a challenging landscape of supply chain disruptions, high interest rates, and intense competition. Analysts attribute the rally to leaked details about Lucid's discussions with Uber to integrate its high-efficiency electric powertrains into Uber's planned fleet of autonomous vehicles.

Uber, the ride-hailing giant, has been aggressively pursuing robotaxi initiatives as a way to reduce operational costs and eliminate the need for human drivers. The company has already partnered with Alphabet's Waymo in select markets like Phoenix and San Francisco, where self-driving Jaguar I-PACE vehicles are ferrying passengers. However, Uber is reportedly looking to diversify its suppliers and scale up its robotaxi operations nationwide. Enter Lucid, whose Air sedan boasts an impressive EPA-estimated range of over 500 miles on a single charge—far surpassing many competitors, including Tesla's Model S. This extended range is crucial for robotaxis, which need to operate continuously without frequent recharging stops that could disrupt service.

Sources close to the negotiations, speaking on condition of anonymity, indicate that Lucid's proprietary battery technology, which emphasizes energy density and rapid charging capabilities, aligns perfectly with Uber's vision for a seamless, efficient robotaxi network. "Lucid isn't just building cars; they're engineering the future of mobility," one industry insider told USA TODAY. "If this deal goes through, it could be a game-changer, allowing Uber to deploy fleets that outlast and outperform anything Tesla has on the roadmap right now."

This potential partnership couldn't come at a better time for Lucid, which has faced its share of hurdles since going public in 2021 via a SPAC merger. The company has struggled with production ramp-ups at its Arizona factory, delivering fewer vehicles than anticipated in recent quarters. In Q2 of this year, Lucid reported deliveries of just over 2,000 vehicles, a modest figure compared to Tesla's hundreds of thousands. However, CEO Peter Rawlinson, a former Tesla executive who played a key role in developing the Model S, has been vocal about Lucid's focus on quality over quantity. "We're not in the business of mass-producing mediocrity," Rawlinson said in a recent earnings call. "Our vehicles represent the pinnacle of EV engineering, and partnerships like this validate our approach."

The timing also underscores Tesla's vulnerabilities. Elon Musk's company had planned to unveil its much-anticipated Robotaxi—a purpose-built autonomous vehicle—at an event originally scheduled for August. However, reports emerged this week that the event has been postponed to October, citing the need for additional prototyping and refinements to the vehicle's design. This delay has fueled speculation that Tesla is grappling with regulatory hurdles, software glitches in its Full Self-Driving (FSD) system, and supply chain issues exacerbated by global semiconductor shortages. Tesla's stock dipped slightly on the news, contrasting sharply with Lucid's gains.

Industry experts see this as a broader shift in the EV landscape, where Tesla's dominance is being challenged by nimble upstarts like Lucid and Rivian. "Tesla has been the 800-pound gorilla, but delays in key projects like the Robotaxi open the door for others," said Sam Abuelsamid, principal analyst at Guidehouse Insights. "Lucid's strength lies in its battery tech, which could give Uber a competitive edge in terms of uptime and cost per mile."

Delving deeper into Lucid's offerings, the company's flagship Lucid Air model comes in various trims, from the entry-level Pure to the high-performance Sapphire, which boasts over 1,200 horsepower and a 0-60 mph time of under two seconds. What sets Lucid apart is its 900-volt architecture, which enables faster charging and greater efficiency. For robotaxis, this means less downtime and more revenue-generating miles. Uber's interest reportedly extends to Lucid's upcoming Gravity SUV, a seven-seater that's set to enter production later this year, potentially adaptable for shared mobility services.

The robotaxi market itself is poised for explosive growth. According to projections from McKinsey & Company, the global autonomous vehicle market could reach $1.5 trillion by 2030, with robotaxis accounting for a significant portion. Uber aims to capture a large slice of this pie, having invested billions in its Uber ATG (Advanced Technologies Group) before selling it to Aurora in 2020 and pivoting to partnerships. By teaming up with Lucid, Uber could accelerate its rollout, especially in dense urban areas where range anxiety and charging infrastructure remain barriers.

Critics, however, caution that the deal is far from finalized. Regulatory approval for widespread robotaxi deployment is still a patchwork across the U.S., with the National Highway Traffic Safety Administration (NHTSA) scrutinizing autonomous systems following incidents involving Cruise and Waymo vehicles. Lucid itself has no direct experience in autonomous driving software, relying instead on hardware prowess. "They'd need to integrate with a software partner like Mobileye or even Tesla's former collaborators," noted auto analyst Jessica Caldwell from Edmunds. "But if executed well, this could position Lucid as the go-to hardware provider for the robotaxi revolution."

Investor sentiment reflects this optimism. Hedge funds and retail traders alike have piled into Lucid shares, with trading volume spiking to over 50 million shares—triple the average. Social media platforms like Reddit's WallStreetBets are abuzz with memes comparing Lucid to Tesla's early days, dubbing it "Tesla 2.0." One popular post read: "Lucid to the moon while Tesla delays? Buckle up!"

Looking ahead, Lucid plans to expand its manufacturing footprint, with a new facility in Saudi Arabia backed by the kingdom's Public Investment Fund, a major shareholder. This international push could provide the scale needed to meet potential demand from Uber and other partners. Meanwhile, Tesla is doubling down on its Cybercab concept, promising a sub-$30,000 vehicle optimized for autonomy, but the delay has investors questioning execution timelines.

In the broader context of the EV industry, this story highlights the convergence of electrification and autonomy. Companies like Ford and GM are also dipping toes into robotaxis through ventures like Argo AI (now defunct) and Cruise, respectively. Yet, Lucid's luxury focus sets it apart, appealing to premium ride-hailing segments where passengers demand comfort and performance.

As the day progressed, Lucid's stock closed up 11.5%, a clear vote of confidence from the market. Whether this Uber tie-up materializes remains to be seen, but it's evident that Lucid is no longer just a Tesla rival—it's emerging as a key player in the future of transportation. Stakeholders will be watching closely for official announcements, which could come as early as next quarter's earnings reports.

This surge isn't isolated; it's part of a larger narrative where EV startups are maturing amid economic headwinds. Lucid's ability to secure high-profile partnerships could be the catalyst for sustained growth, potentially leading to profitability by 2026 as forecasted by some analysts. For Uber, aligning with Lucid means betting on cutting-edge tech to outpace competitors like Lyft, which has its own autonomous ambitions through Motional.

In conclusion, the buzz around Lucid's stock and the Uber robotaxi rumors underscores a pivotal moment in the auto industry. As Tesla stumbles on timelines, rivals like Lucid are stepping up, armed with innovative tech and strategic alliances. The road ahead is electric, autonomous, and fiercely competitive— and Lucid seems ready to charge forward. (Word count: 1,048)

Read the Full USA Today Article at:
[ https://www.usatoday.com/story/cars/news/2025/07/18/lucid-stock-price-uber-robotaxi-tesla-rival/85276687007/ ]