Uber becomes major Lucid shareholder with 20,000 vehicle order

Lucid Motors has secured a major partnership with Uber that includes a $300 million investment and an order for 20,000 Gravity SUVs, even as the electric vehicle (EV) manufacturer acknowledges its current cash reserves will not sustain operations to break-even.

The deal makes Uber Lucid’s second-largest shareholder after the Saudi Public Investment Fund. The 20,000 Gravity SUVs are destined for a planned self-driving fleet set to launch in a United States city next year.

Interim CEO Marc Winterhoff confirmed the automaker’s current cash reserves of about $4.86 billion in cash and credit facilities will not carry it to break-even, meaning the company will need to raise additional equity by 2026.

Partnership offers validation and expansion potential

Winterhoff described the Uber deal as a “validation” of Lucid’s advanced technology, calling the order a starting point with potential for global expansion, according to the Financial Times.

The partnership could eventually reach Europe and the Middle East, where Lucid is developing new production capacity. Beyond supplying vehicles, Lucid is exploring the option of becoming a fleet manager itself – owning the self-driving SUVs and renting them out to Uber drivers.

This approach could create a steadier revenue stream and reduce reliance on volatile retail sales, addressing one of the key challenges facing the EV manufacturer.

Policy changes impact profitability

Despite technological advantages such as market-leading driving range, Lucid continues to lose hundreds of thousands of dollars per car sold. The company faced a major setback when the Trump administration ended the $7500 federal EV tax credit and eliminated emissions trading programmes.

Winterhoff admitted those changes represented “a big number of pure profit” lost, but stressed they were not central to Lucid’s long-term strategy.

More affordable models planned

Looking forward, Lucid is betting on more affordable models to broaden its market reach. A mid-size SUV priced around $50,000 is planned for 2026, compared with the Gravity’s $94,900 sticker price.

Early signs of shifting demand are already visible, with sales boosted by Tesla owners seeking alternatives to aging model lineups. However, Lucid’s shares remain down about 95% from their 2021 peak, underlining investor concerns over whether the Uber deal and upcoming products can close the gap to profitability.