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Uber invests $300 million in Lucid, an EV manufacturer as part of the robotaxi deal

Uber is investing $300 million into Lucid, a maker of electric vehicles. The companies plan to launch a robotaxi service in one U.S. major city by the end of next year.

Lucid shares surged 56% in the trading session before the bell, to $3.58. The company had also announced that it proposed a reverse stock split one for ten of its common class A stock.

Uber said that over the next six years, starting in 2026 it will purchase and deploy more than 20,000 Lucid Gravity vehicles, which will be equipped by startup Nuro with autonomous vehicle technology (AV).

The agreement shows the renewed push and plans for funding for self-driving taxis, years after an initial wave of investment in autonomous driving produced only a small number of vehicles. Tesla recently began a robotaxi test in Austin, and Alphabet’s driverless taxi unit Waymo has been accelerating its expansion.

In their joint statement, Uber said that as part of the announced deal it will invest hundreds millions of dollars into Lucid and Nuro which provides self-driving technologies to automakers. Lucid will receive $300 million of that amount, according to a separate filing made by the EV manufacturer to the U.S. Securities and Exchange Commission.

Uber's recent move shows its renewed interest in the robotaxi market after 2020. Uber has since partnered with several technology companies, including Waymo, Aurora, and others.

Uber and Lucid have signed a robotaxi deal in April. Volkswagen will provide its ID.Buzz vans to Los Angeles for upcoming commercial services.

Commercializing AV technology has proven to be more difficult than expected, with tight regulations, high costs and federal investigations forcing some, such as General Motors Cruise, shut down.

Amazon.com Zoox is still in the running. It's testing a robotaxi that doesn't require manual control and has plans to launch a commercial service in Las Vegas in this year.

Tesla began a limited trial in Austin, Texas last month, after years of broken promises. The company used a dozen Model Y SUVs. Elon Musk, the CEO of Tesla, has stated that it will rapidly expand this service to other U.S. Cities in 2018.

Waymo is a company that has grown slowly over the years. It operates in many U.S. cities, with around 1,500 vehicles. This month, it reached 100 million miles in autonomous driving.

The companies have confirmed that a prototype of the Lucid-Nuro roboticaxi has already been operating autonomously in a closed loop at Nuro's Las Vegas testing facility.

Marc Winterhoff, interim CEO of Lucid, said: "We're expanding beyond our traditional EV leadership and working with partnerships to go into areas we haven't really focused on in the past."

Nuro is a company founded by former Waymo employees and has grown from making vehicles for last-mile deliveries to offering its self-driving technologies in commercial and passenger vehicles.

Dave Ferguson, co-founder of Nuro and its president, stated that "we have other very active discussions going on the personal vehicles side... where we will integrate Nuro Driver into vehicles which are sold to consumers."

He said that Nuro would still have to apply for operating licenses at the state level, even though they already hold some licenses from previous operations.

(source: Reuters)