Lucid Stock Update: What’s Driving the Rebound?
Lucid Group (NASDAQ: LCID) recently caught investors’ attention after executing a 1-for-10 reverse stock split on September 2. This move lifted its stock price to $18.41, but it did not come from soaring EV sales. Instead, the reverse split reduced the outstanding share count from 3.07 billion to 307.3 million, while authorized common shares were cut from 15 billion to 1.5 billion.
Reverse stock splits are often perceived as a warning sign for struggling companies, as they aim to maintain listing compliance or attract institutional investors. Indeed, LCID shares dipped immediately after the announcement.
However, the narrative shifted by the end of the week. Positive news gave the stock momentum — namely a strategic $300 million investment from Uber, aimed at transforming Lucid’s future.
Uber’s $300 Million Bet on Lucid’s Robotaxi Project
Lucid confirmed the closing of Uber’s previously announced investment on July 17, 2025. The funding will accelerate the development of Lucid’s next-generation premium robotaxi fleet, which will be manufactured at the company’s Arizona facility.
The initiative brings together three industry leaders:
- Lucid Gravity Platform – delivering premium EV architecture.
- Nuro’s Level 4 autonomous driving system – ensuring self-driving capabilities.
- Uber’s global fleet management expertise – optimizing ride-hailing deployment.
Over the next six years, the companies aim to deploy more than 20,000 Lucid Gravity electric SUVs integrated with Nuro’s technology. The launch is expected in late 2026 in a major U.S. city, with global expansion to follow.
This partnership represents one of the most ambitious collaborations in the autonomous electric vehicle (EV) market, positioning Lucid as more than just a luxury EV manufacturer.
Lucid's Midsize EV and Gravity SUV Plans
While the Uber collaboration grabbed headlines, Lucid also updated investors on its Midsize Platform. According to its Q2 earnings call, the company remains on track to begin production in late 2026.
The midsize EV will target a starting price below $50,000, a significant move aimed at reaching mainstream customers. This expansion should help Lucid scale volumes, capture new segments of the EV market, and eventually improve gross margins.
Analyst Andres Sheppard of Cantor highlights Lucid’s key advantages in the EV landscape, including:
- Superior battery efficiency
- Longer driving range
- Stronger performance metrics
- Larger interior space
- Faster charging times
Sheppard also emphasized that the Gravity SUV has the potential to massively expand Lucid’s total addressable market (TAM), estimated to be six times larger than the Lucid Air sedan.
Cautions and Optimism for Lucid Stock
Despite Lucid’s promising developments, Sheppard maintains a Neutral rating on LCID stock, with a $20 price target, implying roughly 9% upside over the next 12 months.
He cites ongoing challenges, including:
- Persistently negative gross margins
- Additional capital requirements
- Global supply chain constraints
- Macroeconomic headwinds
- Tariff uncertainty in key markets
Sheppard is not alone in his cautious stance. Among 12 analysts covering the stock:
- 9 rate it Hold
- 2 rate it Buy
- 1 rates it Sell
Overall, Lucid carries a Hold consensus rating. Yet, analysts project significant upside potential, with an average price target of $27.73 — suggesting ~51% gains in the next 12 months.
Is Lucid Stock a Buy?
Lucid’s rebound highlights the market’s optimism for its Uber partnership and future EV lineup, but challenges remain. The upcoming Gravity SUV and midsize EV launch could be pivotal in proving whether Lucid can scale successfully and compete in the crowded electric vehicle industry.
For investors, LCID represents both risk and opportunity. If Lucid executes on its ambitious roadmap, today’s volatility could pave the way for long-term growth. But for now, many analysts — including Andres Sheppard — remain on the fence.
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