Uber Teams Up With Lucid and Nuro in $300 Million Robotaxi Expansion

Uber is taking a bold step into the future of mobility with a newly announced six-year, $300 million partnership aimed at deploying more than 20,000 autonomous electric vehicles across the United States. The ride-hailing giant has partnered with luxury electric vehicle manufacturer Lucid and autonomous driving startup Nuro to bring a custom-built fleet of robotaxis to the streets starting next year.

The deal, revealed Thursday, signals Uber’s deeper push into self-driving technology, a space that has seen accelerating momentum in recent years. As part of the agreement, Uber will invest $300 million in Lucid, helping to fund the development of a new line of electric vehicles designed specifically for autonomous ride-hailing. Nuro, known for its robotics expertise and backed by investors like Google and SoftBank’s Vision Fund, will supply the Level 4 autonomous driving software that powers these vehicles.

Under the terms of the partnership, Lucid will manufacture and supply at least 20,000 robotaxis to Uber over the next six years. These vehicles will be equipped with Nuro’s full-stack self-driving system, capable of handling everyday driving without human intervention under typical conditions. Testing of the first prototype is already underway at Nuro’s proving grounds in Las Vegas, where the vehicles are being refined in preparation for public deployment.

The companies expect the program to launch in a major U.S. city in 2026, though they have not yet disclosed which one. The initiative builds on Uber’s recent expansion with Alphabet-backed Waymo, which brought self-driving ride services to cities like Atlanta and Austin earlier this year. With the new Lucid-Nuro partnership, Uber is doubling down on its long-term strategy to integrate more fully autonomous vehicles into its platform.

Lucid’s role is particularly significant, as the company brings to the table its EV engineering and range capabilities. Its upcoming Gravity SUV, which boasts a 450-mile battery range, will serve as the initial vehicle platform for the robotaxi fleet. This extended range is expected to reduce charging downtime and lower operating costs, while also increasing vehicle availability on the Uber platform.

Nuro described the agreement as a scalable model for commercial robotaxi programs worldwide. With significant investment from top-tier venture capital firms and an extensive R&D history in autonomous systems, Nuro is positioning itself as a key player in next-generation transportation infrastructure.

Lucid, for its part, sees this partnership as a strategic move into a new, high-growth segment of the EV market. While traditionally focused on luxury electric sedans and SUVs, the company is now expanding into fleet-based mobility services, opening the door to recurring revenue through large-scale partnerships.

Together, the three companies aim to create a purpose-built robotaxi experience that blends safety, efficiency, and advanced EV design. As Uber continues to diversify beyond its traditional driver-based model, this alliance marks a major step toward a more autonomous and electrified future of urban mobility.

Lucid CEO Defends $1.75 Billion Capital Raise Amid Stock Decline

Key Points:
– Lucid’s CEO calls the $1.75 billion raise a strategic decision to ensure growth and stability.
– Investors reacted negatively, resulting in an 18% stock drop, the worst since 2021.
– Lucid remains focused on long-term investments, including expanding production and launching new models.

Lucid Group’s CEO, Peter Rawlinson, defended the company’s recent decision to raise $1.75 billion through a public offering after the move triggered an 18% stock drop last week. Rawlinson explained that the capital raise was a timely, strategic decision intended to secure Lucid’s ongoing operations and growth, particularly as the company gears up to expand production and develop new electric vehicle (EV) models.

The capital raise, which included the sale of nearly 262.5 million shares of common stock, came just two months after Lucid received a $1.5 billion cash infusion from Saudi Arabia’s Public Investment Fund (PIF). Despite this, the stock market reacted harshly, with analysts questioning the timing and necessity of the move, especially given Lucid’s reported liquidity of over $5 billion at the end of the third quarter.

Rawlinson, speaking to CNBC from the company’s offices in suburban Detroit, addressed the concerns by stating that the raise was anticipated. He noted that it was necessary to avoid issuing a “going concern” disclosure, which is required by Nasdaq-listed companies within 12 months of a potential financial runway issue.

However, Wall Street analysts, including Morgan Stanley’s Adam Jonas, saw the capital raise as premature, noting it was “slightly larger and earlier than expected.” RBC Capital’s Tom Narayan echoed these concerns, pointing out that the raise followed closely after the PIF investment, leading some investors to question why Lucid needed additional funds at a time when its share price was depressed.

Despite the market’s negative reaction, Rawlinson remained steadfast, emphasizing that the capital raise extends Lucid’s financial stability through 2026. This financial security will allow Lucid to proceed with its long-term investment plans, which include expanding its factory in Arizona, building a new facility in Saudi Arabia, launching the new Gravity SUV, and enhancing its next-generation powertrain technology.

The stock dilution that accompanied the raise also caused concern among individual investors. However, Rawlinson noted that the continued backing of the PIF—Lucid’s largest shareholder—should be seen as a positive signal of confidence in the company’s future. PIF’s affiliate, Ayar Third Investment Co., purchased an additional 374.7 million shares of Lucid common stock as part of a pro-rata agreement to maintain its 59% ownership stake.

“If we didn’t go pro rata, it surely would be a signal that the PIF were losing faith in us,” Rawlinson emphasized.

Lucid has reported record deliveries in 2024 for its flagship all-electric sedan, the Air, and expects to produce 9,000 vehicles this year. The company also plans to begin production of the Gravity SUV by the end of 2024. However, despite these milestones, Lucid has faced challenges scaling its sales and financial performance due to high costs, slower-than-anticipated EV demand, and brand awareness issues.

Rawlinson acknowledged the capital-intensive nature of the company’s current operations but stressed that these investments are crucial for long-term growth.