11:37 AM EDT, 07/17/2025 (MT Newswires) -- Uber Technologies ( UBER ) faces execution risk on its recently announced robotaxi program due to Lucid's (LCID) limited production capacity and the technical challenge of scaling Nuro's autonomous vehicle system, Wedbush said in a note Thursday.

Uber ( UBER ) said Thursday it aims to deploy 20,000 or more Lucid vehicles equipped with Nuro's autonomous driving technology over six years in dozens of markets globally. The new service is expected to begin in 2026 in a major US city.

The deal could affect Uber's ( UBER ) existing partnership with Alphabet's (GOOG, GOOGL) Waymo unit, increase Uber's ( UBER ) capital spending with reported investment of about $300 million in Lucid and a much larger sum in Nuro, and pose operational risks due to the scale and technology demands of Lucid and Nuro, Wedbush analysts noted.

Lucid delivered about 10,000 cars in 2024 and aims for 20,000 in 2025, which analysts say may not be enough to meet Uber's ( UBER ) needs without raising more capital, Wedbush said.

Analysts also said that Tesla (TSLA) and Waymo have a stronger lead in AV technology and scale, making this deal a risky bet for Uber ( UBER ), according to the note.

Wedbush maintained a neutral rating for Uber ( UBER ) with a $85 price target.

Price: 90.52, Change: -0.23, Percent Change: -0.25