Lucid closed a deal with Uber to power its robotaxi division, with Uber investing $300 million and committing to purchase 20,000 vehicles from Lucid. Wall Street veteran Jim Cramer is skeptical about the long-term potential of the deal. Meanwhile, Rivian’s partnership with VW may offer better prospects, with VW providing up to $5.8 billion in funding. Cramer believes the commitment from Volkswagen to Rivian is more substantial than Uber’s investment in Lucid. Investors should consider both partnerships before making investment decisions.

The partnership between Lucid and Uber involves Uber ordering 20,000 Lucid Gravity SUVs over six years for a robotaxi service launch in a major U.S. city. Uber will invest $300 million in Lucid to help scale up production. Although promising, there are concerns about the financial viability of Lucid over the next six years. On the other hand, Rivian’s deal with Volkswagen includes up to $5.8 billion in funding, highlighting a stark difference in commitments between the two partnerships.

Jim Cramer views Rivian’s deal with Volkswagen as superior to Lucid’s partnership with Uber, citing the substantial funding commitment from Volkswagen. While Lucid’s partnership with Uber is exciting, Rivian’s deal with VW offers more credibility to its technology stack. Investors interested in the Uber-Lucid partnership should also explore Rivian’s and Volkswagen’s collaboration to make informed investment decisions.

Read more at Nasdaq.: Rivian vs. Lucid: 1 Reason Jim Cramer Likes One Stock Over the Other