Lucid Group (LCID 0.24%) stock spiked nearly 50% last month when it announced its robotaxi venture with Uber Technologies. This could be a huge opportunity. Some experts believe the global robotaxi market could eventually be worth $10 trillion. With a market cap of just $7 billion, this one opportunity could transform the company as we know it.
Think it's too late to invest? Think again. There's one major reason investors are still getting a bargain at today's valuation.
The future of Lucid Group isn't making cars
First, it's important to note what has happened to Lucid's share price following its massive spike. In the weeks that followed, shares gave up nearly all of the gains. So if you want to buy into the robotaxi opportunity, you're not paying much of a premium versus investors who bought in before the announcements.
Even if you bought during the spike, however, there's reason to remain bullish. The deal with Uber gives huge market validation to Lucid's master plan for growth. Yes, the company will be supplying Uber with vehicles to power that company's robotaxi division. But it's really Lucid's technology that Uber is buying into.
Earlier this year, Lucid's former CEO revealed that the company is aiming to be 20% car maker, 80% technology supplier. "The vision I have for Lucid is: Just as there's an Intel inside your laptop, there's a Lucid inside a Honda or a Toyota," he said.
Image source: Getty Images.
After the Uber announcement, investors should gain more confidence in those predictions. Lucid has clearly developed a technology stack that other companies are willing to pay hundreds of millions of dollars for. The deal will also put 20,000 additional Lucid vehicles on the road, giving the company more real-world data for its autonomous driving program.
To be clear, it's still early innings for the robotaxi opportunity. But the Uber deal clearly validates Lucid's potential for selling its technology to what should become a multi-trillion-dollar industry.
