Lucid Group has been investing in its Advanced Driver-Assistance System (ADAS) technology. While the company has leading technology, it has not yet formed any joint ventures. A potential partnership, similar to Rivian and Volkswagen’s, could significantly benefit Lucid’s business. Despite a lukewarm market for electric vehicles, Lucid has shown improvement in operations, with seven consecutive quarters of rising deliveries and attracting major investors like Saudi Arabia’s Public Investment Fund.

Additionally, Lucid is enhancing its vehicles with over-the-air (OTA) software updates, introducing features like Hands-Free Drive Assist and Hands-Free Lane Change Assist. These updates demonstrate Lucid’s commitment to ADAS technology. The company is also exploring opportunities to sell its technology stack to major manufacturers, similar to Rivian’s successful partnership with Volkswagen.

In contrast, Rivian’s joint venture with Volkswagen, valued at up to $5.8 billion, highlights the potential for collaboration between cutting-edge technology companies and established automakers. Rivian’s partnership with Volkswagen allows for the integration of Rivian’s technology into Volkswagen’s vehicles across various segments. Lucid has the potential to follow a similar path, but must demonstrate its ability to generate revenue from its technology stack.

Investing in Lucid Group carries risks, but if the company can establish a joint venture like Rivian’s, its future prospects could be promising. Before investing, consider the recommendations of The Motley Fool Stock Advisor analyst team, who have identified the top 10 stocks for investors to buy now, excluding Lucid Group from their list.

Read more at Nasdaq: 1 Last Thing Lucid Needs to Prove to Wall Street