Lucid Motors, the American electric vehicle (EV) manufacturer, is making significant strides in its global expansion efforts. The company’s highly anticipated EVs are now available for lease in Saudi Arabia, marking a pivotal moment for Lucid’s presence in the Middle Eastern market.
In the second quarter of 2023, Lucid produced a total of 2,173 electric cars, with 1,404 vehicles delivered to customers. Unfortunately, these numbers fell short of expectations, reflecting a downward trend in production and stagnant delivery figures over the past two quarters.
Following a robust performance in the fourth quarter of 2022, Lucid has experienced a decline of over 37% in production and a 27% drop in deliveries. These figures highlight the challenges faced by the company in maintaining its momentum and meeting market demand.
However, amidst these setbacks, Lucid did share a positive update. The company recently announced the commencement of material shipments to the Kingdom of Saudi Arabia, a development that holds significant promise for its future growth.
Lucid’s expansion plans in Saudi Arabia are closely tied to its largest shareholder, the Saudi Arabia Public Investment Fund (PIF). The PIF injected approximately $1.8 billion in capital last month, contributing to a $3 billion stock sale and increasing its ownership stake in Lucid to approximately 60.5%. To date, the PIF has invested around $9 billion in the EV manufacturer.
Within a week of Lucid’s announcement regarding material shipments, reports confirm that the first batch of EVs is now available for lease in Saudi Arabia. The Saudi Post took to Twitter to share the news, stating that Saudi leasing companies have initiated the leasing of luxury electric Lucid vehicles within the Kingdom.
This milestone is a direct result of a commitment made by the Government of Saudi Arabia last year. Under the ambitious “Saudi Vision 2030” initiative, Saudi Arabia agreed to purchase a minimum of 50,000 EVs over the next decade. This strategic move aligns with the nation’s goal of reducing emissions and achieving stable economic growth.
Presently, Saudi Arabia’s economy heavily relies on oil, which accounts for nearly half of the nation’s GDP. However, the “Saudi Vision 2030” aims to transform this scenario by promoting the manufacturing and export of advanced EVs while increasing the contribution of non-oil exports to the non-oil GDP from the current 16% to an impressive 50%. Shedding light on this endeavor, Abdulla Al-Swaha, Saudi’s Minister of Communications and IT, shared that the Kingdom intends to manufacture and export over 150,000 electric cars by 2026.
Al-Swaha believes that the Kingdom’s majority ownership in Lucid has elevated Saudi Arabia’s status to that of a developed country. Construction of Lucid’s inaugural manufacturing facility in the region commenced in May, located in the King Abdullah Economic City, Saudi Arabia. The plant will undertake re-assembly of Lucid Air models, which are pre-built at the company’s facility in Casa Grande, Arizona, United States.
Full-scale production at the Saudi Arabian factory is projected to commence by 2024, with an annual manufacturing capacity of 155,000 vehicles. This ambitious plan will enable Lucid Motors to contribute significantly to the growing EV market and support Saudi Arabia’s vision for a sustainable future.
In addition to expanding its manufacturing capabilities, Lucid Motors recently entered into a strategic partnership with Aston Martin. This collaboration entails the provision of Lucid’s advanced EV powertrain technology to Aston Martin, with the deal estimated to be worth approximately $450 million. Lucid’s CEO, Peter Rawlinson, emphasizes that this partnership is only the beginning of the company’s endeavors in the tech sector, highlighting the vast potential for future collaborations and business growth.
As Lucid Motors makes strides in Saudi Arabia and establishes key partnerships, the company is poised to solidify its position as a leading player in the global EV market. With its commitment to innovation and sustainability, Lucid is well-equipped to contribute to the transformation of the automotive industry.
