Lucid Group’s stock dropped to $8.32 on Monday, its lowest point yet, due to recall worries, slow first-quarter sales, and investor frustration, reports WSJ. By Tuesday, Lucid had named a new CEO, announced a $1.05 billion capital raise, and revealed a bigger robotaxi partnership that could help its growth. One executive called it “a big day” on social media.
The new funding comes from three sources: a $300 million public stock offering that closed on April 15, a new $200 million investment from Uber Technologies, binging Uber’s total to $500 million, and $550 million in convertible preferred stock from Ayar Third Investment Company, which is linked to Saudi Arabia’s Public Investment Fund, Lucid’s biggest supporter.
Analysts say this money should keep Lucid funded until late 2027, giving it time to ramp up production.
Lucid started in 2007 as Atieva, founded by former Tesla VP Bernard Tse, Sam Weng, and Sheaupyng Lin. At first, the company made high-performance battery packs and electric powertrains for other carmakers and was the sole battery supplier for Formula E.
Its cars hold EPA efficiency records, with the Air Pure RWD rated at 146 MPGe and the Air Grand Touring able to go up to 512 miles on a charge. In 2016, the company became Lucid Motors when Peter Rawlinson, who had been chief engineer for the Tesla Model S, joined as CTO and shifted the focus to making Lucid’s own cars. Rawlinson later became CEO, but stepped down in February 2025 and still serves as CTO.
Lucid sells premium electric vehicles and competes with Tesla, Rivian, BMW, and Mercedes-Benz. Its Air sedan goes up against the Tesla Model S, which has a 410-mile range, and the BMW i7, which has a 314-mile range.
Lucid’s upcoming Midsize platform, which will cost less than $50,000, is meant to compete directly with the Tesla Model Y and Rivian R2. Lucid claims its cars are so efficient that they can match competitors’ ranges with a smaller, cheaper battery, potentially lowering costs.
Uber has committed to purchasing at least 35,000 Lucid vehicles, including at least 25,000 Midsize Plus models, over six years for its planned global robotaxi service, with commercial operations expected to begin in late 2026. For Lucid, this partnership provides predictable, large-scale orders that its luxury retail business has not achieved.
Lucid expects to produce between 25,000 and 27,000 vehicles in 2026. The company lost nearly $1 billion in the first quarter and expects to spend $3.8 billion in cash in 2025. The new funding gives Lucid more time, but its success will depend on the Midsize platform and the Uber deal.
