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.
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2025-07-21 23:33