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Lucid Group (LCID) is advancing its autonomy efforts by shipping engineering vehicles to Nuro for Uber’s robotaxi program in Q3 2025, with initial service in San Francisco slated for 2026. Additionally, Lucid has partnered with NVIDIA to develop consumer-focused Level 4 autonomous features.
In the context of product upgrades, Lucid expects major Advanced Driver Assistance Systems (ADAS) enhancements for its Gravity and midsize platforms by late 2026, aiming to boost software features and pricing power. However, financial challenges persist, as the company faced a negative GAAP gross margin of 99% and a free cash flow deficit of $955.5 million in Q3 2025, amidst ongoing supply chain issues.
Despite showing record demand with seven consecutive quarters of increasing deliveries, Lucid carries a Zacks Rank #4 (Sell), emphasizing the need for improved margins and cash flow to validate its future autonomy ambitions.
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