Lucid Stock Rallies 16.6% in July Amid Robotaxi Deal and Upgrades to EVs

Lucid Group stock surged 16.6% in July due to upgrades to its cars, a robotaxi deal with Uber, and efforts to make its stock more attractive with a proposed 1-for-10 reverse stock split. The deal with Uber will see the company buy over 20,000 Lucid Gravity SUVs equipped with Level 4 autonomy software, with an expected launch in late 2026. Lucid's stock has since lost around 7% of its value in August.

Lucid Group (NASDAQ: LCID) saw its stock surge 16.6% in July, driven by upgrades to its vehicles, a significant robotaxi deal with Uber Technologies (NYSE: UBER), and a proposed 1-for-10 reverse stock split. The stock, however, has since lost around 7% of its value in August [1].

In July, Lucid upgraded its Air sedans to work on Tesla's supercharger network and increased the EPA range estimate for its 2026 Air Touring model by over 6% to 431 miles. Additionally, the company hired actor Timothée Chalamet as its global brand ambassador to enhance its brand appeal [1].

The most significant driver of Lucid's stock rally was its partnership with Uber. Under the deal, Uber will buy over 20,000 Lucid Gravity SUVs equipped with Nuro's Level 4 autonomy software and deploy them over six years, starting in late 2026. This deal, valued at $300 million, marks Lucid's entry into the multitrillion-dollar robotaxi market [2].

Lucid's proposed 1-for-10 reverse stock split aims to make its stock more attractive to institutional investors by preventing delisting from the Nasdaq stock exchange and making the stock less of a penny stock [1].

However, Lucid faces challenges, including production woes, high costs, and manufacturing inefficiencies, which could impact demand and sales. The company's net loss rose by 8% to $855 million in the second quarter, and it cut its full-year production guidance to 18,000 to 20,000 vehicles [1].

Lucid's stock performance has been mixed, with the Motley Fool Stock Advisor not including it in its top 10 stocks to buy right now, despite the company's potential [1].

References:
[1] https://www.nasdaq.com/articles/why-lucid-stock-jumped-166-july
[2] https://www.tradingview.com/news/zacks:48ba9f936094b:0-will-uber-s-300m-bet-on-gravity-accelerate-lucid-s-growth/