This week, financial expert Michael Legg increased his projected price for Lucid Group (LCID) to $7 per share. This suggests that the stock could see over 100% growth within the next year. But what’s causing such optimism among analysts like him? It boils down to a potential market value of $1 trillion.
Robotaxis are a $1 trillion opportunity
Last month, Tesla debuted its robotaxi trial operation in Austin, Texas, and analysts were enthused by the possible expansion prospects. Dan Ives, an analyst from Wedbush Securities, anticipates that Tesla’s robotaxi segment could boost the company’s valuation by a staggering $1 trillion within the next 12 to 18 months. Cathie Wood, the CEO of Ark Invest, envisions that the global robotaxi market will eventually reach approximately $10 trillion in value.
The recent news from Lucid is particularly thrilling due to their partnership with Uber Technologies (UBER), announced on July 17. This collaboration aims at expanding Lucid’s robotaxi division, with Uber purchasing a total of 20,000 Lucid Gravity SUVs over the next six years, exclusively for use in their robotaxi service.
As an excited enthusiast, I can’t help but share the news that Uber is planning to inject a substantial $300 million into Lucid Motors – a significant financial boost for a company currently operating at a loss. Interestingly, Lucid and Uber are both major investments under the Public Investment Fund (PIF) of Saudi Arabia, tying these two innovative entities together.
In the unveiling of Uber’s robotaxi service, the Gravity SUV will be the pioneer model. However, Uber hinted at the possibility of incorporating other vehicles in the future, suggesting a potential alliance with Lucid Motors beyond their Air sedan and into their upcoming mass-market vehicles, which are slated to start production within the next few years.
The total worth of both Uber and Lucid on the stock market is approximately $200 billion. This is significantly lower compared to Tesla’s current value of $1 trillion. This means that Tesla could potentially expand its self-driving taxi service (robotaxi division) at a faster pace than Uber. However, if Uber manages to quickly develop robotaxis, Lucid would directly benefit as a key player in this scenario.
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2025-07-23 14:34