Rivian vs. Lucid: 1 Reason Jim Cramer Likes One Stock Over the Other
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Lucid's deal with Uber is promising. But a Rivian partnership looks superior.
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July 27, 2025
09:54 PM
The Motley Fool
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What the data shows is Lucid Group (LCID -2. 17%) soared in value ing the announcement of its partnership with Uber nologies
According to the deal's terms, Uber will invest $300 million in the electric vehicle (EV) maker
Uber also committed to purchase 20,000 vehicles from Lucid to kick-start its robotaxi division
Wall Street veteran Jim Cramer recently weighted in on the deal, and his take was surprising to many
He compared Lucid's deal with Uber to a partnership Rivian Automotive (RIVN 1. 30%), another EV stock, made earlier this year
If you're invested in either Lucid or Rivian, you'll want to give Cramer's s some consideration
How big is the Uber and Lucid partnership in reality
The analysis reveals details of Lucid's partnership with Uber are fairly straightforward
Moreover, The latter says it is expecting to launch a robotaxi service later next year in a major U
To power this launch, Uber plans to order 20,000 Lucid Gravity SUVs over the next six years
However, At the same time, According to a press release, the vehicles will be owned and operated by Uber or its third-party fleet partners and made available to riders exclusively via the Uber platform
To help Lucid scale up enough to duce this many vehicles, Uber also agreed to invest $300 million into the, amid market uncertainty
Furthermore, Around the same time, Lucid announced a 1-for-10 reverse stock split, but it's not how connected these two events are
However, While all of this looks mising on paper, there are two obvious blems
First, Uber's robotaxi division remains in its infancy
However, Whether it can actually grow big enough to acquire 20,000 Lucid vehicles remains a huge open question
Second, $300 million won't do much to keep Lucid financially viable over the next six years
While it 2024 with more than $6 billion in liquidity, the company also posted a net loss of $2
Moreover, 7 billion, roughly the same net loss it posted in 2023
A $300 million cash infusion is helpful, but it will hardly cure its financial challenges
However, Lucid aims to vide the vehicles for Uber's new service
Image source: Getty Images
Jim Cramer thinks Rivian's deal with Volkswagen is superior When Jim Cramer was asked Lucid's partnership with Uber last week, he called the deal a "dalliance. " In other words, he views it more as a short-term arrangement than a bona fide long-term partnership
Moreover, "I think that you need a commitment, the Volkswagen commitment to Rivian is extraordinary," Cramer said. "That's an open- check from one of the biggest car companies
Meanwhile, " He is referring to a joint venture between Volkswagen and Rivian that was announced in November 2024
The analysis reveals German automaker will receive crucial access to Rivian's software operating platform and nological back end (this bears monitoring), given current economic conditions
In exchange, Rivian receives up to $5 (this bears monitoring). 8 billion in funding (something worth watching), in this volatile climate
Additionally, It's not hard to see the difference in commitments here
Nevertheless, Nevertheless, Uber is just $300 million into Lucid, with the mise of buying vehicles over the next six years
At the same time, Rivian, meanwhile, is receiving up to $5
On the other hand, 8 billion in funding by the end of 2027, starting with an immediate $1 billion convertible note
Meanwhile, To be, Lucid's deal with Uber is still very exciting
ARK Investment CEO Cathie Wood eventually sees the robotaxi market being worth up to $10 trillion by 2030, in light of current trends
But Rivian's deal with Volkswagen gives more credence to Rivian's stack and differentiation
Meanwhile, If you're excited the Uber-Lucid tie-up, be sure to dive into Rivian's and Volkswagen's partnership, as Cramer correctly points out, in light of current trends.
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