EV manufacturer Lucid (LCID) and chipmaker Nvidia (NVDA) are teaming up to bring self-driving technology to Lucid’s upcoming electric vehicles. More specifically, at Nvidia’s GTC event, which is a global AI conference for developers, the company announced that Lucid’s upcoming midsize vehicle will feature Level 4 autonomous driving powered by Nvidia’s DRIVE AGX platform and DriveOS. This means that the car will be fully self-driving, but only in certain areas or conditions, similar to how Waymo’s robotaxis work. Lucid plans to launch this vehicle in 2026.
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Notably, Nvidia CEO Jensen Huang said that this is a new era in which cars are becoming “supercomputers on wheels.” Meanwhile, Lucid’s interim CEO, Marc Winterhoff, added that combining AI with Lucid’s engineering will help create some of the smartest and safest autonomous vehicles on the road. Nevertheless, before Level 4 is rolled out, Lucid will first bring “Level 2+” hands-free driving to its Gravity SUV, similar to Tesla’s FSD or GM’s Super Cruise. Both the Level 2+ and Level 4 systems are expected to launch over the next few years.
Lucid is also working on robotaxis in a separate partnership with Uber (UBER) by using Nuro’s Level 4 technology for business use. For personal cars, it will use Nvidia’s platform. In addition to autonomous driving, Lucid is improving its factory operations with Nvidia’s Industrial software to speed up production, improve quality, and lower costs. More updates, including questions about the Nvidia deal, are expected when Lucid reports its Q3 financial results on November 5.
Is LCID Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on Lucid stock based on one Buy, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Lucid price target of $25 per share implies 39% upside potential.
