Lucid Group, Inc. (LCID)'s Deal With Uber Is "A Dalliance," Says Jim Cramer

We recently published Jim Cramer Discusses These 10 Stocks & AI-Led Disinflation. Lucid Group, Inc. (NASDAQ:LCID) is one of the stocks Jim Cramer recently discussed.

Lucid Group, Inc. (NASDAQ:LCID) is a pure-play electric vehicle manufacturer that primarily focuses on the high-end electric vehicle market. The firm’s shares are flat year-to-date. However, Lucid Group, Inc. (NASDAQ:LCID)’s stock had lost 24% year-to-date until July 16th, primarily on the back of a massive 35% dip in February. So what changed the firm’s fortune? Well, Lucid Group, Inc. (NASDAQ:LCID)’s shares jumped by 36% after Uber announced a $300 million investment in the firm as part of a robotaxi deal. Here’s what Cramer said about the investment:

“I mean I, you know could, when I drove a Lucid, it’s absolutely a terrific car. And that’s the extent of what you should do with it. Drive it.

“I think that you need a commitment, like the VW commitment to Rivian is extraordinary. And it still hasn’t, still Rivian is back to where it was [inaudible]. That’s an open ended check from one of the biggest, the biggest car company. So I don’t think that Uber, it’s a dalliance, it’s a dalliance. It’s fun but it’s prurient.”

“I don’t want these. I think that these are all. . .you don’t want to be in them. They don’t have balance sheets to be able to handle what it takes to be a car. . .Although Lucid comes close to being a DeLorean.”

Previously, the CNBC TV host discussed whether Lucid Group, Inc. (NASDAQ:LCID) was a suitable long-term investment:

“You’re 21. Let’s put our money with something that is going to make a little more sense than Lucid. I think that if you wanted to be in that area, if you wanted to be in that kind of progressive area, you might go with Rivian, okay. I think Rivian is better than Lucid. Bingo.”

While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.