Latest news with #LCID
Globe and Mail
2 days ago
- Business
- Globe and Mail
Lucid Motors Proposes a 1-for-10 Reverse Split: Should Investors Be Worried?
Key Points Exploring how the proposed reverse stock split may impact Lucid stock. Details on a potential game-changing development that sent the stock surging higher. Whether investors can buy the news, or if they should stick to the sidelines instead. 10 stocks we like better than Lucid Group › Stock splits often generate headlines, and investors typically cheer them. However, Lucid Group (NASDAQ: LCID) recently announced that it proposed a 1-for-10 reverse stock split. Unlike a regular stock split, many investors see a reverse stock split as bad news because they typically occur when a stock has lost a significant portion of its value. Lucid fits that description; shares are down over 94% from their all-time high. But Lucid also announced a potential game changer the same day as the reverse stock split, which sent the stock soaring. Should investors worry about the stock and the company's future? What the reverse stock split means for investors Lucid's proposal is for a 1-for-10 reverse stock split. If approved, the reverse split would consolidate every 10 shares into one. So, Lucid's share price, currently $3, would be $30 following the reverse split, but there would be 10% as many shares as before. The bottom line here is that the stock's market capitalization and financial valuation remain unchanged. Stock splits don't mean as much for investors as you'd think, considering all the attention they receive. Usually, the reason for the stock split matters more than the split itself, especially for reverse stock splits. In Lucid's case, the reverse split will help the stock remain compliant with the Nasdaq stock exchange 's minimum share price listing requirements. Additionally, a higher share price may improve the stock's appeal to individual and institutional investors. The scoop on Lucid Group's brand-new partnership Lucid also dropped some major news. It announced a massive partnership with Uber Technologies and Nuro. The venture will have Lucid supply vehicles equipped with Nuro's autonomous driving technology to Uber for use in an autonomous robotaxi program. The deal involves the purchase of 20,000 vehicles over six years. Uber is also making "multi-hundred-million dollar investments" in Lucid Group and Nuro. The joint venture signals Uber's urgency to counter emerging autonomous competition from Alphabet 's Waymo and Tesla 's Cybercab. For Lucid, it provides a much-needed sales boost. The company's electric vehicle (EV) technology has garnered awards, but Lucid still sells far fewer vehicles than needed to sustain its factories and is operating at significant net and cash losses. Should investors worry about Lucid Group? By itself, the reverse stock split shouldn't worry investors. It's the stock's ongoing challenges that should. Share prices rarely experience such severe declines without reason. Lucid has continuously raised funds by issuing new stock. The resulting share dilution has a significant impact on the stock's performance. Uber's investment gives the company a financial incentive to help Lucid succeed, but it's likely going to dilute existing shareholders further. The 20,000 vehicles may also not be enough to get Lucid over the hump. That's approximately 3,333 vehicles annually, or 833 each quarter. It's a nice boost, but it's also unlikely to solve Lucid's volume problems single-handedly. Lucid delivered 3,109 units in the first quarter of 2025, generating $235 million in revenue, but reported a $366 million net loss and a $589 million cash-flow loss. It will still take a home run with its upcoming Lucid Earth, a more affordable SUV than its newly launched Gravity, to generate the volume it needs to operate profitably. Investors would probably be wise to remain cautious, at the very least, until Lucid grows its sales volume to the point where its financial losses become small enough to sustain its business operations without requiring additional fundraising. Until then, Lucid's business and stock could remain under pressure, even with its exciting new partnership. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Business Insider
3 days ago
- Business
- Business Insider
Lucid Stock (LCID): Morgan Stanley Sees ‘Strategic Opportunities' in Uber Deal Ahead of Q2 Results
Luxury electric vehicle (EV) maker Lucid Group (LCID) will report its Q2 results on August 6. The stock gained over 36% on Thursday after the company announced a new partnership with Uber (UBER) and autonomous tech startup Nuro. The three companies plan to deploy 20,000 Lucid Gravity SUVs, equipped with Nuro's self-driving technology, on Uber's network over the next six years. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Following the news, Top Morgan Stanley analyst Adam Jonas reiterated a Hold rating on Lucid with a $3.00 price target. Four-star analyst Adam Jonas believes the Uber-Nuro deal shows that Lucid is expanding its focus beyond EVs and starting to pursue 'AI-enabled autonomy' through strategic partnerships. Analyst Sees Long-Term Value in the Uber Deal Jonas highlighted Lucid's upcoming Gravity SUV as a key part of the company's next growth phase. He believes the deal shows Lucid's potential to play a bigger role in the AI and self-driving space. As part of the deal, Uber will invest $300 million in Lucid. While the amount is relatively small compared to Lucid's ongoing cash needs, Jonas believes it could provide short-term support as Lucid works to ramp up Gravity production. Although Morgan Stanley remains cautious on the stock, the firm views the deal as an important step that could lead to more partnerships in AI, EV technology, and global markets, helping Lucid strengthen its position in the fast-growing autonomous driving space. What's Ahead for Lucid Stock? Looking ahead into the Q2 earnings season, Wall Street forecasts a Q2 2025 loss of $0.22 per share, an improvement from the $0.34 per share loss in the same quarter last year. Meanwhile, revenues are expected to rise by 41% from the same quarter last year, reaching $283.2 million, according to data from the TipRanks Forecast page. Investors will be watching closely for updates on Gravity production, spending levels, and any early signs of revenue growth tied to these new partnerships. Is LCID Stock a Buy? The stock of Lucid Group has a consensus Hold rating among ten Wall Street analysts. That rating is currently based on one Buy, eight Hold, and one Sell recommendations issued in the past three months. The average LCID price target of $2.70 implies 13.46% downside from current levels.
Business Insider
4 days ago
- Automotive
- Business Insider
Lucid Stock (LCID) Rockets Over 30% after $300M Uber Robotaxi Investment
Shares in electric vehicle maker Lucid (LCID) charged higher today after Uber Technologies (UBER) pledged to invest $300 million in a robotaxi deal. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Dozens of Markets The agreement which will start in late 2026 and last for 6 years will see Uber buying and deploying over 20,000 Lucid Gravity SUVs. They will be equipped with autonomous vehicle technology from startup Nuro. The aim is to start in one major U.S. city, but then roll out to 'dozens of markets' around the world. The vehicles will be owned and operated by Uber or its third-party fleet partners and made available to riders exclusively via the Uber platform. The first Lucid-Nuro robotaxi prototype is already operating autonomously on a closed circuit at Nuro's Las Vegas proving grounds. Uber said that the longer 450-mile estimated range of the Lucid Gravity would mean less frequent downtime for charging, minimizing costs and maximizing vehicle availability. 'This investment from Uber further validates Lucid's fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles, and our industry-leading range and spacious well-appointed interiors, as ideal for ridesharing,' said Marc Winterhoff, Interim CEO at Lucid. 'This is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market.' Indeed, it promises to be a huge boost the company whose stock price has suffered this year with lower than expected deliveries and the departure of CEO Peter Rawlinson. Uber Push Uber said it would invest hundreds of millions of dollars in Lucid and Nuro. The move is another example of Uber's renewed push into the robotaxi space after exiting in 2020. Since then, it has pivoted to partnerships with several technology developers, including Alphabet (GOOGL) -owned Waymo and Aurora. It also signed a robotaxi agreement in April with Volkswagen (VWAGY) that will supply its vans for commercial service planned for Los Angeles next year. Other rivals include Tesla (TSLA), which recently launched a robotaxi trial in Texas. Uber will be hoping to boost its platform numbers which have been relatively static over the last few years. Is LCID a Good Stock to Buy Now? On TipRanks, LCID has a Hold consensus based on 1 Buy, 8 Hold and 1 Sell ratings. Its highest price target is $5. LCID stock's consensus price target is $2.70 implying a 13.88% downside.
Yahoo
4 days ago
- Automotive
- Yahoo
Uber to Deploy Lucid Vehicles in New Robotaxi Program; Lucid Shares Soar
Uber Technologies (UBER) plans to deploy at least 20,000 Lucid (LCID) vehicles that will be equipped Sign in to access your portfolio
Yahoo
5 days ago
- Automotive
- Yahoo
Lucid Stock Is Soaring on an Uber Partnership. How Should You Play LCID Here?
Lucid (LCID) shares are up more than 40% at the time of writing after Uber Technologies (UBER) said it will invest $300 million in the EV maker as part of a broader robotaxi agreement signed today. Uber will also invest in Nuro, an autonomous technology startup that will equip LCID vehicles with self-driving capabilities More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Peter Thiel Is Betting Big on This Ethereum Treasury Stock. Should You Buy Shares Now? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. These vehicles will then be delivered to the ride-hailing giant as robotaxis over the next six years. Note that Lucid stock is still down some 13.5% versus its year-to-date high set in February. Significance of UBER Deal for Lucid Stock Lucid shareholders are cheering the news primarily because it positions the automaker at the center of Uber's long-term robotaxi strategy. A $300 million investment not only boosts LCID's financial runway, but validates its technology and manufacturing capabilities as well. Partnering with Nuro for autonomous integration adds future-facing value, while the commitment to deliver more than 20,000 robotaxis over six years ensures sustained demand. LCID shares are rallying this morning because it's not just a one-off deal – it's a multi-year pipeline of revenue, visibility, and relevance in the autonomous mobility space. For investors, it signals strategic traction and credible path toward scaled commercial deployment. LCID Shares Could Crash Right Back to $1 While the UBER announcement sure is positive for Lucid shares, it may not be sufficient to warrant loading up on the EV stock at current levels, according to Bank of America analysts. On Thursday, the investment firm reiterated its 'Underperform' rating and $1 price target on the automaker, indicating potential for over 65% downside from here. According to the BofA experts, increased tariffs under President Donald Trump and a deceleration in product development following the departure of Peter Rawlinson as chief executive this year could weight on LCID stock. Additionally, slowing demand for electric vehicles at large remains a major overhang on Lucid as well, they told clients in a research note today. Wall Street Remains Bearish on Lucid Group While not nearly as bearish as Bank of America, other Wall Street analysts are not comfortable with Lucid stock's current valuation either. The consensus rating on LCID shares currently sits at 'Hold' only with the mean target of $2.84 signalling potential for a steep decline of more than 15% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
