On Monday, shares of Lucid Group (LCID) experienced a decrease. By 3:10 p.m. ET, the electric vehicle company’s stock had dropped by 7.9%. This decline occurred despite the S&P 500 and Nasdaq Composite both rising by 0.4% and 0.5%, respectively.
After a significant surge following the news last week about its deal with Uber Technologies, the stock is now experiencing a pullback.
Lucid nets a win
On Thursday, it was disclosed that the firm is joining forces with Uber and autonomous driving company Nuro to introduce robotaxis in a significant American city within the upcoming year. The technology from Nuro will be incorporated into Lucid’s Gravity SUVs, which should enhance sales of their latest vehicle model.
The news about the partnership propelled Lucid’s stocks high, but they appear to be slowing down as investors consider the partnership details. While Uber’s plan to buy 20,000 SUVs benefits Lucid significantly, the delivery of around 3,000-4,000 vehicles per year over six years won’t drastically change Lucid’s overall sales figures. Moreover, the potential “hundreds of millions” investment Uber plans to inject into Lucid might result in increased stock dilution.
Challenges remain
Lucid is finding it challenging to generate a profit and its sales aren’t as high as required. Although the sales of Gravity products have shown promise, they remain below the self-imposed goals of the company. I harbor significant concerns about whether Lucid can manage a turnaround, considering the current moderately sluggish state of the electric vehicle market in general.
Read More
- Broadcom’s Quiet Challenge to Nvidia’s AI Empire
- Heights Capital Bets $16M on ImmunityBio: A Calculated Gamble?
- How to Do Sculptor Without a Future in KCD2 – Get 3 Sculptor’s Things
- Gold Rate Forecast
- METH PREDICTION. METH cryptocurrency
- Trump Ends Shutdown-And the Drama! 🎭💸 (Spoiler: No One Wins)
- Odyssey of Avalanche: DeFi’s New Darling, Zero Lockups! 🚀🎩
- South Korea’s KRW1 Stablecoin Shocks the Financial World: A Game-Changer?
- Shiba Inu’s Netflow Drama: Bulls, Bears, and 147 Trillion SHIB
- Floki Price Prediction: FLOKI Extends Downtrend as Sell-Side Volume Dominates
2025-07-21 23:33