Lucid stock on fire, skyrockets 30% after Uber robotaxi deal shocks market — Tesla, Waymo feel the heat

Time of India

17-07-2025

Lucid Motors just stunned Wall Street.
After months of financial uncertainty and slipping stock prices, the EV startup is back in the spotlight—this time with a game-changing partnership that could redefine the future of robotaxis. In a bold move, Uber has invested $300 million into Lucid and committed to buying 20,000 self-driving SUVs powered by Nuro's autonomous tech. The result? Lucid stock soared nearly 30% in a single day, sending shockwaves through the self-driving car industry and putting pressure on longtime leaders Tesla and Waymo.
What exactly is in the Uber–Lucid–Nuro deal?
On July 17, Uber unveiled a strategic $300 million investment in Lucid Motors, instantly becoming its second-largest shareholder after Saudi Arabia's Public Investment Fund. But the money is just the beginning.
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Uber has also agreed to purchase at least 20,000 Lucid Gravity SUVs over six years starting in late 2025 or early 2026. These vehicles will be powered by Nuro's Level 4 autonomous driving technology, capable of operating without human input under specific conditions.
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To round it out, Uber also joined Nuro's Series E funding round and gained a seat on its board. It's a bold pivot by Uber—back into the robotaxi race it once seemed to abandon.
Why did Lucid stock surge nearly 30%?
Lucid's shares shot up almost
30%
following the announcement, closing near
$3.60
after hovering around $2.75 before the news. Investors had been concerned about Lucid's heavy losses—nearly
$6 billion
since 2023—and uncertain future. This partnership immediately changes the narrative.
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Here's why the market reacted so strongly:
Cash infusion
: Uber's $300 million gives Lucid vital breathing room.
Massive pre-orders
: 20,000 vehicles translate into a multibillion-dollar revenue pipeline.
Validation
: A tech giant like Uber putting its weight behind Lucid boosts long-term credibility.
Is Nuro the secret weapon in this partnership?
Nuro might be the most underrated player here.
Originally focused on autonomous delivery robots, Nuro is now making a serious jump into passenger mobility. Its AV stack—capable of Level 4 autonomy—will be integrated into Lucid's premium Gravity SUVs. A prototype is already undergoing testing in Las Vegas.
By securing Uber as both a customer and investor, Nuro gets a fast track to commercial scale—and suddenly looks like a real contender in the self-driving tech world.
How does this affect Tesla's robotaxi ambitions?
Tesla has long touted its Full Self-Driving (FSD) software and vision-based system as the key to a robotaxi revolution. In June 2025, it launched a
pilot service in Austin
, using modified Model Y vehicles with safety monitors onboard.
But despite Tesla's enormous lead in data and ambition, the rollout hasn't been flawless:
Early issues
: Reports of phantom braking, wrong-way turns, and traffic signal confusion have emerged.
Regulatory pressure
: With safety under the microscope, national regulators are watching closely.
Still, Elon Musk insists Tesla's
Cybercab
—its purpose-built robotaxi—will enter production in 2026. If successful, Tesla's vertically integrated approach could be unstoppable. But for now, Uber and Lucid have stolen the spotlight.
What about Waymo? Is the leader now under threat?
Waymo, owned by Alphabet (Google's parent), is still the most established robotaxi operator on the road. It's quietly racking up impressive stats:
Over
100 million
driverless miles.
Operating in
Phoenix, San Francisco, Los Angeles, Austin, Miami
, and
Atlanta
.
Providing more than
250,000 rides per week
.
Yet despite its lead in safety and scale, Waymo's business model remains costly. Each vehicle is estimated to cost around
$120,000
, and profitability is still years away. HSBC analysts recently warned that
robotaxis may not break even for another 7–8 years
due to hidden costs like remote assistance and vehicle cleaning.
Uber's entry with Lucid and Nuro might not dethrone Waymo, but it certainly raises the stakes.
How do Lucid, Tesla, and Waymo compare right now?
Let's break it down in terms of short-term momentum and long-term positioning:
Company
Short-Term Outlook
Long-Term Potential
Lucid
Massive PR win, 30% stock surge, Uber cash lifeline
High risk, high reward — if it delivers those 20K AVs, it becomes a real player by 2027
Tesla
Still king in EV volume, but FSD rollout is rocky
Could dominate if Cybercab and FSD get regulatory approval; upside hinges on flawless execution
Waymo
Safest and most reliable robotaxi tech today
Long-term viability strong, but scaling costs and slow path to profit limit excitement
What do analysts think about this new robotaxi race?
Lucid
: Benchmark analysts maintain a
Buy
rating after stronger-than-expected Q2 deliveries (3,309 units) and the Uber deal. They say the company now has enough cash to 'survive and scale.'
Tesla
: Analysts are divided. Some predict a
$2.5 trillion market cap
if FSD and robotaxis take off. Others warn that the technology is not yet ready for mass deployment.
Waymo
: Praised for its safety and engineering, but criticized for slow rollout and cost inefficiency. Still, it's widely seen as a benchmark in AV reliability.
Who's winning the robotaxi war?
The robotaxi space just got a lot more competitive—and more interesting.
Lucid
has gone from nearly written off to a surprise dark horse, thanks to Uber's faith and funding.
Tesla
remains the boldest player, with potential unmatched if it can overcome technical and regulatory hurdles.
Waymo
is the most proven, but may need a cost revolution to stay ahead.
In the end, it may not be a winner-takes-all game. But one thing is clear: Uber's pivot back into autonomy has reignited the race—and Lucid is now very much in the game.
FAQs:
Q1. Why did Lucid Motors stock go up 30% suddenly?
Lucid stock jumped after Uber invested $300 million and ordered 20,000 self-driving Lucid SUVs.
Q2. How does this Lucid–Uber deal affect Tesla and Waymo?
It increases competition as Lucid enters the robotaxi race against Tesla's FSD and Waymo's city rollouts.