Uber to invest $300m in EV maker Lucid for robotaxi development

Uber will invest US$300 million in electric vehicle manufacturer Lucid to support the development of robotaxis.

The partnership aims to launch in one major US city by late 2026, featuring over 20,000 Lucid Gravity SUVs equipped with autonomous driving technology from startup Nuro.

The agreement includes a broader collaboration between Uber, Lucid, and Nuro, with Nuro providing self-driving systems for the vehicles.

A prototype of the Lucid-Nuro robotaxi is currently undergoing autonomous testing at Nuro’s facility in Las Vegas.

However, Nuro will need to secure additional state-level operating licenses for commercial deployment.

This deal marks Uber’s renewed push into autonomous vehicles after its 2020 exit, following recent tie-ups with Waymo, Aurora, and Volkswagen.

Following the announcement, Lucid’s shares rose over 56%.

The company has framed the partnership with Uber as part of its strategy to expand beyond electric vehicle production.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Autonomous taxis are experiencing a second major investment wave

Uber’s $300 million investment in Lucid represents a significant shift in the autonomous vehicle landscape, which has been developing in distinct waves since 2016.

The first major wave began when NuTonomy launched the world’s first public trial of self-driving taxis in Singapore in 2016, following a relatively modest $16 million funding round1.

That initial period saw companies like General Motors invest $500 million in Lyft for autonomous development, while BMW partnered with Intel and Mobileye to target fully autonomous cars by 20211.

The current wave involves substantially larger investments, like Uber committing to acquire 20,000 Lucid vehicles. This reflects both the higher capital requirements and the more mature technology landscape of today’s robotaxi ventures.

This pattern demonstrates how autonomous vehicle development has required multiple rounds of investment and strategy adjustments as companies confront the complexity of bringing the technology to market.