Shares of Lucid Motors fell more than 7% in the first minutes of Friday’s session, retracing part of Thursday’s 36% surge that followed the electric vehicle maker’s announcement of a partnership with Uber and autonomous driving startup Nuro.
Under the agreement, Uber plans to purchase 20,000 Lucid Gravity SUVs equipped with Nuro’s Level 4 autonomous driving technology over the next six years.
The first vehicles are expected to be deployed in late 2026.
As part of the deal, Uber will invest $300 million in Lucid through a private placement priced at the 30-day volume-weighted average price and subject to an 18-month lock-up period.
While the partnership was initially met with investor enthusiasm, several analysts cautioned that the financial implications may be limited.
Additionally, the EV maker issued a statement minutes before the deal, informing that it plans to execute a reverse stock split.
BofA Securities analyst John Murphy reiterated an Underperform rating and $1.00 price target, citing continued risks tied to Lucid’s product roadmap following the departure of CEO Peter Rawlinson earlier this year.
“Although the announcement is a positive development, it remains unclear what the financial ramifications are outside the sale of incremental 20,000+ vehicles and the Uber investment,” Murphy wrote.
He added that there is little visibility into potential revenue-sharing opportunities.
Stifel’s Stephen Gengaro, who maintained a Hold rating and $3.00 price target, noted that while the entry into the robotaxi market is a “positive that could yield material long-term value,” key questions remain about execution and monetization.
Gengaro pointed out that Uber or its third-party fleet partners will own and operate the vehicles, not Lucid, potentially limiting recurring revenue streams.
Morgan Stanley analyst Adam Jonas reiterated an Equalweight rating and $3.00 target, calling the deal “a demonstration of LCID recognizing its key strategic position in the broader autonomy ecosystem.”
However, Jonas stopped short of calling the partnership a near-term financial catalyst, instead emphasizing the potential longer-term value of Lucid’s software-defined vehicle platform.
The analyst added that the partnership can be the first of many “strategic opportunites” for the Newark-based EV maker.
Following Thursday’s surge in Lucid shares, Morgan Stanley’s price target for the EV maker is now below current levels. The stock closed the previous session at $3.12 after having soared 36%.
Benchmark’s Mickey Legg upgraded his price target to $7.00 from $5.00 and reiterated a Buy rating, calling the agreement a “clear strategic win” that brings capital, credibility, and “two world-class partners.”
Legg also noted the company’s upcoming 1-for-10 reverse stock split, scheduled for a shareholder vote on August 18, as a potential further catalyst.
Speaking to Bloomberg, interim CEO Marc Winterhoff dismissed speculation that Lucid’s proposed reverse stock split was aimed at avoiding a potential Nasdaq delisting.
The German executive said the company’s shares remain well above the $1 threshold required to maintain its listing and framed the move as a strategic step to reduce volatility and broaden institutional ownership.
