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Lucid Shifts Gears: From Car Maker to Tech Supplier
23 Aug
Summary
- Lucid partners with Uber for 20,000 vehicle purchase
- Lucid aims to generate 80% of sales from technology licensing
- Analysts expect 45-240% upside potential for Lucid stock
In a significant move, Lucid Group (NASDAQ: LCID) has announced a partnership with Uber Technologies that has sent the company's stock soaring by 40% last month. As per the deal, Uber has agreed to purchase 20,000 vehicles from Lucid, as well as infuse $300 million in fresh cash into the business.
While not all Wall Street analysts were thrilled with the move, many have expressed exuberance. In early August 2025, several experts reiterated their price targets for Lucid stock, expecting anywhere between 45% and 240% in potential upside. The key reason for this optimism is Lucid's plan to transform its business model.
Lucid, which has primarily been a vehicle manufacturer, is now shifting its focus to become a technology supplier. The company's former CEO has stressed that he would like the business to generate just 20% of sales from manufacturing, with the other 80% stemming from technology licensing. This pivot is significant, as licensing requires less capital to generate new sales and can thus produce higher margins.
The Uber deal is seen as a huge vote of confidence that other major transportation players are willing to pay big money for Lucid's technology stack. As Lucid delivers the 20,000 vehicles to Uber as part of the robotaxi partnership, the sharing of its technology is arguably the biggest reason for the analysts' optimism about the company's future.
