by Brad Anderson
- Uber invested $300M in Lucid during July to support future growth.
- The deal includes 20,000 Gravity SUVs for a new US robotaxi fleet.
- Lucid’s CEO claims Tesla’s aging lineup is helping attract new customers.
The Lucid Air may already be known as one of the most advanced electric cars on the road, boasting the longest range of any EV sold in the United States, but the brand itself is still fighting an uphill financial battle. Each vehicle sold continues to come at a steep loss, so its recent tie-up with Uber, along with efforts to lure drivers away from rival brands, could prove critical to securing a stable future.
Read: Lucid’s Next EV Isn’t A Sedan, It’s An Affordable Off-Roader Made In Saudi Arabia
Through its tie-up with Uber, Lucid will receive $300 million in investments, making Uber its second-largest shareholder after the Saudi Public Investment Fund. Uber will purchase 20,000 Gravity SUVs from Lucid and use them as part of an expansive robotaxi fleet that’ll be introduced across the States starting next year.
Big Backer, Big Bet
This deal could not have come at a more crucial time for Lucid. Following the Trump administration’s decision to axe the EV tax credit and eliminate fines for carmakers who don’t comply with emissions regulations, electric vehicle manufacturers face the prospect of falling sales. Even so, Lucid chief executive Marc Winteroff is confident the Uber deal will serve as the start of an important new era for the brand.
“The largest ride-hailing business in the world does a strategic deal and invests,” Winteroff said. “It tells you something… 20,000 is a starting point. The sky’s the limit.”
Lucid is also thinking of innovative ways to make the most of its Uber deal. According to the firm’s leader, it will sell vehicles to fleet managers on the Uber platform, and wants to source revenue from charging on a per-mile basis. Winteroff added that the removal of the tax credit is “a big number of pure profit that we know have to live without,” so it’s understandable why the firm wants to make the most out of the Uber deal.
Taking Aim at Tesla
During the same interview, Winteroff moved beyond the Uber deal and took a thinly veiled swipe at Elon Musk’s company. He said Lucid has noticed a rising number of Tesla owners making the switch, pointing to the brand’s aging lineup and Musk’s political involvement, which has turned off many buyers.
“We have seen an uptick, that’s definitely the case, in Europe and also here in the US,” Lucid’s CEO revealed. “The Model S, nothing has changed in 12 years now… [customers] are actively looking for other options.” However, Lucid has a long way to go before it can truly threaten Tesla when it comes to sales numbers.
Key to Lucid’s future plans is a mid-size SUV. This new model will start at under $50,000 and may be named the Earth. It will take styling cues from the brand’s existing models, and its production is scheduled to start by the end of 2026. It will also spawn a rugged version inspired by the recent Gravity X Concept and be followed up by an additional model, set to launch in 2028.