Lucid Motors (NASDAQ: LCID) is seeing significant gains in trading as investors show renewed interest in the company amid new strategic partnerships.
In premarket trading on Wednesday, the stock rose to $19.25, up 6.29%, and opened at $18.80, reflecting a 3.81% increase.
Why LCID stock is rallying
The surge comes after Uber announced plans to launch a driverless ride-hailing service in San Francisco next year using Lucid’s Gravity SUVs equipped with Nuro’s Level 4 self-driving technology.
The service, currently in testing, marks Uber’s first deployment of autonomous vehicles in its home market and sets up direct competition with Alphabet’s Waymo. Uber aims to operate 100,000 autonomous vehicles on its platform by 2027, starting with at least 20,000 self-driving Lucid vehicles.
As part of the rollout, Lucid and Nuro are developing an “Engineering Test Fleet” of over 100 robotaxis to ensure safety through simulations, closed-course testing, and supervised on-road trials. The final service will be fully owned and operated by Uber, with rides available exclusively through the company’s app.
In addition to the Uber partnership, Lucid has joined forces with Nvidia (NASDAQ: NVDA) to integrate Level 4 autonomous driving capabilities into its upcoming midsize vehicles. Nvidia’s DRIVE AGX computers and DriveOS platform will power the “mind-free” autonomous system, allowing Lucid vehicles to operate fully autonomously under defined conditions, similar to Waymo robotaxis.
These collaborations underscore Lucid’s aggressive push into the autonomous vehicle market, combining its premium EV lineup with cutting-edge self-driving technology.
Wall Street bullish on LCID
Meanwhile, 11 Wall Street analysts tracked by TipRanks have set an average price target of $25, suggesting a potential upside of 35.28% from the stock’s current price.
The most optimistic projection values the stock at $70, while the most conservative outlook sets it at $10. Analysts maintain a consensus rating of ‘Hold’ on Lucid.
Featured image via Shutterstock
