Uber-Lucid Robotaxi Deal: "Forced Marriage" Driven by Saudi Pressure, Says Gerber

Ross Gerber, former Tesla bull, believes the partnership between Uber and Lucid is a "forced marriage" driven by external pressure, specifically the Saudi Public Investment Fund. Gerber calls it a weak response to growing competition from Tesla and Waymo in autonomous ridesharing. Lucid shares surged 36.24% after the announcement.

Uber Technologies Inc. (UBER) and Lucid Group Inc. (LCID) have announced a significant partnership to deploy more than 20,000 robotaxis over the next six years. The deal, valued at $300 million, involves Lucid providing electric vehicles (EVs) and Nuro, an autonomous vehicle startup, developing the self-driving technology [1]. The partnership aims to launch the robotaxis in a major U.S. urban hub next year.

Ross Gerber, a former Tesla Inc. (TSLA) bull, has criticized the partnership, labeling it a "forced marriage" driven by external pressure from the Saudi Public Investment Fund (PIF) [2]. He argues that the deal is a weak response to the growing competition from Tesla and Waymo in the autonomous ridesharing market.

Shares of Lucid Motors surged 36.24% following the announcement, reaching $3.12 per share. Lucid's interim CEO, Marc Winterhoff, called the partnership an opportunity to compete in a new addressable market [3]. Investor Gary Black noted that Uber benefits the most as autonomous tech advances, as it would allow the company to eliminate driver costs, lowering ridership prices and expanding the total addressable market (TAM) [1].

Uber shares were marginally higher after the announcement, trading at $90.50, and are up 0.59% after hours. The company's partnership with Lucid and Nuro follows its alliance with Alphabet Inc.'s (GOOG) Waymo, with both companies expanding their service to Atlanta and Austin, Texas [3].

Waymo, Alphabet's self-driving division, recently expanded its robotaxi service area in Austin, Texas, from 37 to 90 square miles, aiming to stay ahead of rivals like Tesla [4]. Tesla has been testing its Model Y robotaxis in a limited 42-square-mile zone in Austin, relying solely on cameras and AI.

The partnership between Uber and Lucid is a strategic move to capture a larger share of the growing autonomous ride-hailing market. However, the external pressure from the Saudi PIF and the criticism from Ross Gerber highlight the complexities and challenges in this competitive space.

References:
[1] https://www.benzinga.com/markets/tech/25/07/46486875/uber-lucid-robotaxi-deal-a-forced-marriage-by-the-saudis-says-ross-gerber-slams-it-as-a-weak-response-to-waymo-tesla
[2] https://www.cnbc.com/2025/07/17/uber-lucid-robotaxi-partnership-300-million-20000-nuro.html
[3] https://www.ainvest.com/news/waymo-expands-robotaxi-service-area-austin-outpacing-tesla-autonomous-ride-hailing-market-2507/
[4] https://finance.yahoo.com/news/uber-lucid-partner-on-new-robotaxi-service-taking-on-waymo-and-tesla-123014500.html