Young electric vehicle (EV) makers have had a bumpy road recently, including Lucid (LCID 13.83%). Not only has the U.S. EV market taken off more slowly than anticipated, but the current government administration is dead set on rolling back incentives for EVs and adding tariffs to imported vehicles and parts, which adds to the uncertainty facing many automakers.
That said, the long-term future is almost certainly electric. Here are two reasons long-term investors should take a hard look at Lucid.
1. Overnight robotaxi
In an announcement that seemingly came out of left field, Uber Technologies announced it plans to invest $300 million into Lucid in a robotaxi deal that aims to start in one major U.S. city late next year. Starting in 2026, over the next six years, Uber will acquire and deploy over 20,000 Lucid Gravity crossovers equipped with Nuro's autonomous vehicle technology. The announcement comes at a time when interest in self-driving technology is on the rise again, after the first wave of enthusiasm produced as many questions and complications as it did results.
It also comes at a time Tesla has launched a robotaxi trial in Austin, Texas, and Alphabet's robotaxi unit Waymo is expanding its network. In fact, Waymo has quietly been growing for years and operates in multiple U.S. cities with roughly 1,500 vehicles on the road -- it crossed 100 million miles of autonomous driving in July.
Not only does this bring in a customer acquiring Lucid vehicles and bringing in $300 million of investment, it also has the potential to get tens of thousands of people in Lucid vehicles for brand awareness. It's a no-brainer move for Lucid, and certainly a reason that should intrigue long term investors.
2. Gaining momentum
While Lucid's early years were marred with delays, disruptions, and disappointments, the young EV maker has gained some serious momentum of late. Consider that Lucid just posted its sixth consecutive quarter of record deliveries, with the second quarter's 3,309 deliveries a 38% increase over the prior year.
The company has been slower than hoped to accelerate production of its newly launched Gravity SUV. But Lucid expects to quickly ramp production in the near term, just in time for the market's pull-ahead in demand due to the federal $7,500 tax credit expiration at the end of September.
Image source: Lucid.
Lucid is also gaining momentum with brand awareness by adding Timothée Chalamet, an award-winning actor and cultural icon, as the company's first global brand ambassador. Lucid also has plans to continue expanding its product lineup after initially focusing on delivering two core vehicles: its Air sedan and the Gravity SUV. But after the Gravity SUV, a midsize SUV and possible special editions are due, similar to the high-performance Sapphire version of the Lucid Air.
What it all means
Lucid has delivered a solid 2025 despite challenging macroeconomic conditions and uncertainties with tariffs. It's zeroed in on disciplined cost management, brand building, and accelerating the production and deliveries of its Gravity SUV. The company is also burning cash rapidly and needs to continue strengthening its balance sheet.
That said, while there may be a few bumpy quarters for the U.S. EV market over the next year, Lucid is gaining momentum and emerging as a viable long-term EV maker. As always, Lucid remains a high-risk, high-reward company and should remain a small position in portfolios.
