Lucid (NASDAQ: LCID) saw its shares soar by more than 36% in a single day following the announcement of a high-profile partnership with Uber and autonomous vehicle startup Nuro, marking a potential turning point for the embattled EV maker.
Lucid stock jumped from $2.28 on July 16 to $3.12 by market close on July 17, pushing Lucid’s market cap to approximately $7.1 billion. The rally comes after a prolonged downturn that saw the stock drop 24% year-to-date and touch a 52-week low of $1.93. Lucid was trading at $3.05 in Friday’s pre-market session, down 2.25%.
Morgan Stanley reiterated its Equalweight rating on Lucid while holding firm on a 12-month price target of $3.00. Analyst Adam Jonas noted that while the firm remains cautious, the new partnership offers strategic upside, particularly as Lucid expands its footprint in the autonomous driving space.
The details behind the Lucid Deal
The deal will see at least 20,000 Lucid Gravity SUVs integrated with Nuro’s Level 4 autonomous technology deployed across the Uber platform over the next six years. Testing is already underway at Nuro’s Las Vegas facilities, with a formal rollout expected in a major U.S. city sometime in 2026.
As part of the agreement, Uber will invest $300 million directly into Lucid, with further capital also flowing to Nuro. Morgan Stanley described the infusion as providing Lucid with a “modest financial cushion” as it scales up Gravity production. Benchmark analysts responded to the news by reaffirming a Buy rating, citing strong Q2 deliveries of 3,309 vehicles and ample liquidity to support growth.
Importantly, Lucid’s largest shareholder, who controls a 64% stake also owns roughly 4% of Uber, a dynamic Morgan Stanley says could enhance strategic alignment between the two companies.
The investment bank added that this deal may be a catalyst for further opportunities, including autonomy-focused partnerships, licensing Lucid’s EV tech to legacy automakers, and potentially positioning Lucid as an “on-ramp” for Chinese EVs entering the U.S. market.
While risks remain, Morgan Stanley believes Lucid is starting to unlock value from its underutilized manufacturing base and could play a more prominent role in the fast-evolving AI and mobility ecosystem.
