Lucid has just announced that it has signed an agreement with the government of Saudi Arabia for the purchase of up to 100,000 electric vehicles over the next 10 years.
Under the agreement, the Saudi Arabian government committed to purchase 50,000 electric vehicles from Lucid, with the option to purchase an additional 50,000 vehicles over a ten-year period.
Following the announcement, Lucid’s stock was up 5.4 percent in extended trading. Saudi Arabia holds a 61 percent stake in Lucid, making it the largest shareholder of the California-based electric vehicle manufacturer.
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Lucid currently manufactures its vehicles at a factory in Arizona. Lucid plans to build its first overseas factory in Saudi Arabia later this year. They target the production of up to 150,000 vehicles per year.
“The vehicles purchased by the Saudi government are expected to come from both factories,” Lucid said.
Vehicle deliveries are expected to begin in 2023. Initial vehicle deliveries are between 1,000 and 2,000 units per year, and increase to between 4,000 and 7,000 units from 2025.
See also: Lucid plan to expand to Europe countries this year
A Lucid spokesman said the company had not offered any discounts on any vehicles under the agreement.
In February, Lucid cut its 2022 production forecast from 20,000 vehicles to 12,000 – 14,000 vehicles this year due to semiconductor supply chain problems.
See also: Lucid considering price increases after significant inflation pressure
The company began shipping its $169,000 Lucid Air premium sedan in the United States in October, and said it will ship it to Canadian customers starting this spring.
