Uber inks six-year robotaxi deal with Lucid, invests $300 million in EV company
As part of the partnership, the ride-hailing company is teaming up with Lucid, the electric vehicle maker, and Nuro, an autonomous vehicle startup. Under the agreement, Uber will invest $300 million in Lucid. Nuro will build the self-driving technology that will be used by Lucid to supply Uber the robotaxis over the course of the deal.
The companies plan to launch the robotaxis in a major U.S. urban hub next year.
"We're thrilled to partner with Nuro and Lucid on this new robotaxi program, purpose-built just for the Uber platform, to safely bring the magic of autonomous driving to more people across the world," said Uber CEO Dara Khosrowshahi in a statement.
In an interview with CNBC, Lucid interim CEO Marc Winterhoff called the partnership an opportunity for the EV maker to compete in a "completely new" addressable market it has yet to penetrate.
Nuro, which is backed by Google and the SoftBank Vision Fund, will provide "level 4 self-driving system" software for the cars. The technology can drive passengers under normal traffic and weather conditions without a human behind the wheel.
The partnership with Lucid and Nuro follows Uber's alliance with Alphabet-backed Waymo. The two companies expanded their service to Atlanta and Austin, Texas, earlier this year.
Waymo's vehicles are also considered Level 4, as defined by SAE Levels of Driving Automation. Tesla sells cars today equipped with Autopilot and FSD Supervised systems that fall into the level 2 category, requiring a human at the wheel. Elon Musk's EV company debuted a robotaxi pilot test in Austin in June,
Lucid said the 450-mile range for its Gravity vehicles should help cut costs and charge times while improving accessibility. Winterhoff said the program may eventually include future Lucid vehicles currently in development.
"We've been chosen because of our EV technology leadership," he said.
Testing for the first prototype vehicle is underway on a closed circuit at Nuro's Las Vegas-based proving grounds. In April, the startup raised $106 million in a funding round from T. Rowe Price, Fidelity, Tiger Global and Greylock.
The deal is a "blueprint for a robotaxi program that's both commercially viable and globally scalable," Nuro said in a statement to CNBC.
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Better EV Stock: Alphabet vs. Tesla (Hint: Robotaxis Are the Key)
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But which company is better placed, and which is the better stock? Alphabet vs. Tesla It's entirely possible that Alphabet could decide to spin off Waymo, not least because it reportedly could be valued at more than $45 billion. Meanwhile, one of Tesla's biggest supporters, Cathie Wood's Ark Invest, ascribes 88% of Tesla's enterprise value (market cap plus net debt) to robotaxis in its investment case for the stock, producing an expected value of $2,600 for the stock in 2029. As I have previously discussed, the Ark targets should be taken with a pinch of salt, as its track record on Tesla hasn't been good. However, Ark's core argument is sound and points to Tesla being potentially a far more valuable stock than Waymo ever will be. Pathways to profitability The core argument is that Tesla's business model is scalable to profitability while Waymo's is far less so. 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Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued?
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Miami Herald
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- Miami Herald
Analysts turn heads with new Alphabet stock price target after earnings
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