Uber’s Robotaxi: The $300m Lucid Deal Explained for Investors

Market News |

Written by Haider Saleem
Journalist and Political Analyst | LinkedIn / X

In this article:

1.  What Uber just announced
2. Why now? Explainer on the robotaxi race and industry backdrop
3.  What does this mean for Uber?
4. Is Uber Halal?
5.  Risks and regulatory hurdles

1. What Uber Just Announced

Uber has announced a multibillion-dollar deal to re-enter the autonomous vehicle (AV) space.The ride-hailing platform will invest $300 million into U.S. electric vehicle maker Lucid and purchase a minimum of 20,000 Lucid Gravity SUVs, each factory-equipped with self-driving technology from the AV startup Nuro.

The rollout will begin in late 2026, starting in a major U.S. city that has not yet been disclosed. A prototype vehicle is already operating autonomously at Nuro’s Las Vegas test facility, showing that the technology is beyond the conceptual phase.

Uber’s announcement coincided with Lucid’s declaration of a 1-for-10 reverse stock split – that’s financial maneuver aimed at stabilizing its share price following years of losses.

Explainer – Who’s Involved: Lucid and Nuro 

Lucid Motors manufactures luxury electric vehicles. Its Gravity SUV has a range of 450 miles and a retail price of $94,900, making it one of the longest-range EVs in its class. After years of financial setbacks – including $6 billion in net losses over 2023 and 2024 – Lucid’s stock had struggled. The company’s founder, Peter Rawlinson, resigned in early 2025 and was replaced by interim CEO Marc Winterhoff.

Uber will become Lucid’s second-largest shareholder, behind the Saudi Public Investment Fund (PIF). PIF owns 58% of Lucid and 3.5% of Uber, worth approximately $6.6 billion following recent stock gains.

Nuro, founded by former Waymo engineers, began with autonomous delivery bots and is now shifting into passenger AVs. It is providing the sensor systems, autonomous software, and integration tools for Lucid’s robotaxis. Uber is joining Nuro’s $6 billion Series E round and will take a seat on the company’s board.

2. Why Now? Robotaxi Race and Industry Movements

This deal is not in isolation. There’s global momentum in autonomous mobility. Here what I’ve seen:

1.  Tesla began pilot testing Model Y-based robotaxis in Austin in mid-2025.
2.  Waymo, owned by Alphabet, now operates about 1,500 AVs in several U.S. cities and just passed 100 million autonomous miles driven.
3.  Zoox, Amazon’s AV subsidiary, plans to launch fully driverless service in Las Vegas by the end of 2025.

Uber, having exited in-house AV development in 2020, has since built a network of partnerships. It has teamed up with Waymo (U.S.), Baidu (Asia), and Volkswagen, which will supply ID. Buzz robotaxis in Los Angeles starting 2026.

The Lucid-Nuro deal is Uber’s first full-stack integration, covering vehicle supply, self-driving software, and platform deployment in one strategic push.

3. What does this mean for Uber?

A few points:

·  Urban transport – AVs could reduce carbon emissions and alleviate congestion, especially if deployed at scale.
·  Uber’s model – With fewer human drivers, Uber could cut operating costs and offer more consistent ride availability.
·  Markets – Lucid stock jumped 26% on the news, while Uber strengthened its AV position via equity stakes and platform control.

Uber emphasized that these robotaxis will serve ride-hailing passengers, not delivery routes. They have also said AVs will complement – not replace – human drivers. Is this suggesting a hybrid fleet is expected for the foreseeable future?

4. Is Uber Halal?

Yes – Musaffa screened Uber as halal. Read our explainer here.

5. Risks and Regulatory Hurdles

There’s been a lot of talk about how complex the path to robotaxis is. Here 5 things that I’ve found:

1. Cost – Each Lucid Gravity SUV starts at $94,900, excluding Nuro’s self-driving technology.
2. Licensing – Nuro must still obtain state-level permits for commercial passenger operations.
3. Insurance and liability – Determining responsibility in AV-related accidents remains unresolved.
4. Public trust – AV operators like Cruise have faced shutdowns after safety failures, prompting regulatory crackdowns.
5. Rivals – Uber competes with Alphabet, Amazon, and Tesla, each with longer AV investment histories.

References

  1. Financial Times: “Uber agrees multibillion-dollar deal with Lucid for electric robotaxi fleet,” 17 July 2025.
  2. Reuters: “Uber to invest $300 million in EV maker Lucid as part of robotaxi deal,” 17 July 2025.
  3. The Times: “Uber buys into Lucid for robotaxis,” 18 July 2025.
  4. The Observer: “Uber hitches ride on first fleet of robotaxis,” 20 July 2025.

Business Insider: “Uber drivers say driverless cars aren’t replacing them anytime soon,” July 2025.

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