Why Is Lucid (LCID) Stock Soaring Today

What Happened?

Shares of luxury electric car manufacturer Lucid (NASDAQ:LCID) jumped 5.9% in the afternoon session after news of its partnership with Uber to supply 20,000 Gravity SUVs for a new robotaxi program continued to resonate with investors. 

The $300 million agreement represented a significant step for the electric vehicle maker, which has been working to overcome operating losses and cash burn. This deal with a major ride-sharing company like Uber was viewed as a strong endorsement of Lucid's technology and its new SUV model. For investors, it signaled a potentially valuable new sales channel and a concrete step toward scaling its operations and carving out a position in the premium EV market.

The shares closed the day at $22.45, up 6.2% from previous close.

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What Is The Market Telling Us

Lucid’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock gained 9.6% on the news that the company announced it has officially closed a $300 million strategic investment from Uber Technologies. 

The funding finalizes a partnership between the two companies to develop a next-generation premium global robotaxi program. This collaboration combines Lucid's advanced electric vehicle technology with Uber's extensive ride-hailing network. The robotaxis are planned to be built at Lucid's manufacturing facility in Arizona and will operate exclusively on Uber's platform. The program aims to deploy over 20,000 Lucid vehicles over six years. This move marks a significant step into the future of autonomous ride-sharing, with the new service expected to launch late next year in a major U.S. city.

Lucid is down 26.4% since the beginning of the year, and at $22.31 per share, it is trading 37.9% below its 52-week high of $35.90 from September 2024. Investors who bought $1,000 worth of Lucid’s shares 5 years ago would now be looking at an investment worth $225.81.

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