Right now, Wall Street is lukewarm on the electric vehicle (EV) industry, as sales and market share have yet to gain traction at the speed once anticipated.
But at least one EV maker -- Lucid Group (LCID -3.04%) -- has proven capable of turning around operations. After years filled with disruptions, delays, and disappointments, the automaker has gained traction and turned in seven consecutive quarters of rising deliveries. It's proven it can design, develop, and launch incredible high-quality vehicles, and that it can attract a major investor: Saudi Arabia's Public Investment Fund (PIF).
But there's one last thing Lucid needs to prove to Wall Street -- that it can package its technology and generate revenue from it, much like competitor Rivian Automotive has done with Volkswagen.
Look, hands-free!
Lucid's vehicles are using over-the-air (OTA) software updates to become even more capable and more advanced. That's great news for the automaker, which claims to have the best EV technology. Starting later this month, July 30 to be exact, Lucid Air owners will get access to new features through an OTA update that includes Hands-Free Drive Assist and Hands-Free Lane Change Assist.
It's the latest sign that Lucid is continuing to pour capital into Advanced Driver Assistance Systems (ADAS). Kai Stepper, Lucid's vice president of ADAS, noted that the update "offers a glimpse into the future that Lucid is building."
While these new systems might seem like buzzwords to investors, they certainly aren't to be brushed aside and can generate revenue in multiple ways. Consider that Lucid's DreamDrive Pro is an optional ADAS system that includes visible-light cameras, ultrasonic sensors, LiDAR, and surround view cameras, among others, for a small price of $950 plus tax.
But what should really interest investors is whether Lucid can sell its software and technology stack to a major manufacturer for mass production in their vehicle lineup. That's exactly what Rivian was able to do with its partnership with Volkswagen.
Lucid Gravity. Image source: Lucid Motors.
Show me the money!
Rivian formed a joint venture with Volkswagen Group in a deal worth up to $5.8 billion, and potentially more, which combines the strength of Rivian's cutting-edge software stack and electronics architectures and the scale of Volkswagen's production and vehicle platforms. But the biggest takeaway is that there are very real global automakers that have failed to develop solid technology stacks, and Volkswagen finally decided to ask for help.
This is a big deal -- not only for Rivian's cash position, but because it also gets Rivian's technology and products in front of incredible numbers of people in Volkswagen vehicles that span all relevant vehicle segments.
Lucid has proven that it's capable of developing an incredible vehicle. Management noted recently that many of its new customers are coming directly from Tesla, as that company deals with backlash and people are looking for a high-quality and advanced replacement option. Lucid has proven capable of launching vehicles and accelerating production, which the electric Gravity SUV is currently going through the process of as of this writing.
But what Lucid has yet to do is prove to Wall Street that it can package its technology stack and sell it to customers such as Volkswagen. It's one of the few hurdles which remain for a company that appears poised to have a strong finish to 2025 despite a sluggish EV market and uncertainty regarding tariffs.
Investing in Lucid comes with immense risk, but if the company can create a joint venture similar to Rivian's, the automaker's future will be very bright.
