Is Lucid Group a Millionaire-Maker Stock?

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If your goal is amassing a fortune in the stock market, consider investing in small businesses that are addressing significant industries. The Lucid Group (LCID), with a market capitalization of only $9 billion, is one such company, as it ventures into the electric vehicle (EV) sector. Its recent self-driving car partnership could propel its growth exponentially. Let’s delve deeper to understand why this intriguing stock might be worth considering for potential millionaire status.

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Self-driving cars could mint plenty of millionaires

Self-driving car technology appears nearly ready for mainstream use, and financial analysts are extremely enthusiastic, predicting a potential revenue opportunity of $300 billion to $400 billion by 2035. Companies like Lucid could capitalize on this long-term growth, as they have recently partnered with ride-sharing giant Uber Technologies. According to Uber, their plan is to deploy thousands, possibly up to 20,000 or more, of Lucid vehicles equipped with the Nuro Driver™ over a six-year period across numerous global markets.

Uber plans to invest $300 million in Lucid Motors’ shares and order at least 20,000 customized Gravity SUVs for their upcoming robotaxi fleet launch across the United States from next year. This collaboration will utilize autonomous vehicle technology from startup Nuro, which is currently testing its software in cities like Dallas, Miami, and San Diego within the U.S.

The opportunity is vast in this scenario. Uber might emerge as the obvious victor in the struggle for supremacy among robotaxi companies, given that unlike competitors such as Tesla and Alphabet’s Waymo, it currently operates a fully developed ride-sharing service and enjoys extensive brand recognition. For Lucid, this agreement signifies a critical cash injection and also presents an opportunity to acquire a significant, steady client that will aid its business in reaching economies of scale.

To understand the significance of these additional impacts, recall that Lucid only sold 10,241 cars worldwide in 2024. With plans for an extra 20,000 orders within the next six years, this expansion could substantially boost the company’s revenue growth and profit margins as they distribute fixed costs over a larger vehicle fleet.

Investors should bear in mind that the Saudi Arabian government, owning about 60% of Lucid, has committed to buying up to 100,000 of its vehicles over the next decade. This agreement could significantly boost Lucid’s position, as it implies a steady demand that mirrors the popular saying, “If you build it, they will come.

Government support is crucial

The recent collaboration between Lucid and Uber could be an initial indication of the potential ripple effects stemming from the U.S. administration’s efforts to prioritize domestic manufacturing, known as the “made in America” policy. Previously, autonomous vehicle startup Waymo aimed to develop its self-driving car initiative using cars imported from Jaguar, a subsidiary of Tata Motors, and more recently, Geely, a Chinese company. Despite the fact that major Chinese electric vehicle manufacturers may provide better value and quantity, U.S. tariffs on imported vehicles make such alliances financially and politically precarious.

Uber could be choosing to collaborate with the lesser-known, homegrown company Lucid, based in California, as a strategy to dodge certain obstacles. Unlike heavyweight American electric vehicle manufacturers like Tesla, Lucid doesn’t pose a competitive threat.

It’s reasonable for investors to anticipate that Lucid will continue to receive backing from the government of Saudi Arabia, given their significant manufacturing facility there, capable of producing 5,000 vehicles annually and potentially expanding to assemble up to 155,000 cars if necessary. The Saudi Arabian government views Lucid as a crucial component in their strategy to transition their economy beyond fossil fuels. If all goes well, the Saudi plant could evolve into a central export hub for electric vehicles not just within Saudi Arabia, but also to other Middle Eastern nations.

Lucid is a compelling long-term buy

As an ardent supporter, I can’t help but feel thrilled about Lucid’s recent partnership with Uber! This collaboration is set to skyrocket Lucid’s growth and profitability by providing it with a colossal, guaranteed customer base. Moreover, the benefits of better economies of scale will be a significant plus as production ramps up. However, this partnership is just one piece of the puzzle that makes Lucid an enticing investment opportunity right now. This long-suffering company has finally turned the corner and is poised to thrive!

Financial experts predict that the introduction of new Sports Utility Vehicle (SUV) models will propel sales growth to an astounding 97% next year. Notably, with a price-to-sales (P/S) ratio of only 7, this stock is significantly cheaper compared to other options such as Tesla, which fetches a multiple of 11.6 times its sales, despite experiencing a decline in revenue in its latest quarters. It’s unlikely that Lucid stocks will remain this budget-friendly for long.

It’s possible that investing in Lucid stock today could lead to millions for investors, but keep in mind that the market carries inherent unpredictability and potential for growth.

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2025-07-21 20:29