1 Surprising Reason I'm Keeping My Eye on Lucid Group Stock Right Now

It seems like electric vehicle (EV) stocks don't want to be electric car stocks anymore. Instead, they want investors to think of them as tech stocks, or even AI stocks. Just look at Tesla (NASDAQ: TSLA). Tesla's vehicle sales have declined so far this year, yet its market cap is soaring due to opportunities with autonomous robots and self-driving robotaxis.

Lucid Group (NASDAQ: LCID) is one of the smaller EV stocks on the market today. But it wants to evolve into something bigger than just an auto manufacturer. In light of that, there's one thing in particular that I'm keeping a close eye on.

Can Lucid Group follow in Tesla's footsteps?

At least for now, Tesla has convinced investors that it is more than just an auto manufacturing business. Some analysts are even calling Tesla "the most undervalued AI name" on the market -- an odd accolade for a company that has yet to prove its AI technology at scale.

While it isn't as focused on AI, Lucid Group has long tried to transition from a manufacturing company to a tech business. The company's former CEO, Peter Rawlinson, repeatedly stated that, long term, he'd like the business to be roughly 20% automaker and 80% tech supplier. "Because the vision I have for Lucid is: Just as there's an Intel inside your laptop, there's a Lucid inside a Honda or a Toyota," Rawlinson stressed earlier this year.

Image source: Getty Images.

This summer, Lucid made its first moves toward this vision with a blockbuster deal with Uber Technologies. Uber needs vehicles to launch its own robotaxi division. These vehicles need to be tech-heavy, with all the necessary components for autonomous driving. Apparently, Lucid's vehicles passed the test, with Uber expected to take delivery of 20,000 Lucid vehicles over the coming years.

We're still a long way out from Lucid becoming a tech supplier versus a manufacturing business. But I'm encouraged by the social validation provided by the Uber deal. I'll be watching the company's evolution closely.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, Tesla, and Uber Technologies. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.