The narrative surrounding Lucid Group (NASDAQ:LCID) stock has been mostly ho-hum over the past few years, as the EV company struggled to make a name for itself amidst an increasingly crowded field.
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Even a solid Q1 2025 showing – with 3,109 vehicles delivered, a 58% year-over-year jump and the fifth straight quarter of record output – failed to meaningfully shift sentiment toward the still-unprofitable automaker.
But that sentiment quickly changed late last week, when Lucid got a major boost from news of a high-profile partnership with Uber and self-driving tech firm Nuro. Under the terms of the agreement, Uber and its partners will roll out 20,000 Lucid Gravity SUVs as autonomous robotaxis over the next six years using Nuro’s technology.
The market didn’t hesitate to cheer the announcement. Shares of LCID have surged by 35% since the news, including a 10% gain today.
Among those taking notice is a top investor known by the pseudonym On the Pulse, who sees the deal as a potential game-changer for Lucid.
“This deal addresses Lucid’s biggest weakness—slow delivery scale-up—and opens the door to the lucrative autonomous vehicle market,” notes the 5-star investor, who is among the very top 1% of TipRanks’ stock pros.
On the Pulse also points out the potential financial upside. With a retail price of $80,000 for the Gravity SUV, a 20,000-unit deployment could amount to $1.6 billion in revenue, even if spread across six years.
Moreover, the timing couldn’t be better. The global robotaxi market is projected to exceed $3 trillion by 2033, giving Lucid a promising entry point into one of the most sought-after growth sectors in mobility.
“The robotaxi deal is a unique way for smaller EV companies like Lucid to leverage their technology and get an entry into the autonomous vehicle market,” the investor adds.
In short, On the Pulse sees this as a prime buying opportunity.
“Despite ongoing losses, the partnership improves Lucid’s risk/reward profile, making me more optimistic about its growth trajectory over the next few years,” the investor concludes, assigning LCID shares a Buy rating. (To watch On the Pulse’s track record, click here)
However, Wall Street remains more cautious. With 7 Hold ratings versus just 1 Buy and 1 Sell, the consensus rating on LCID stands at Hold (i.e. Neutral). The stock’s average price target of $2.91 implies a ~6% downside over the next 12 months. (See LCID stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.