Lucid Group is on track to begin full-scale vehicle production at a new manufacturing facility in Saudi Arabia in 2026, its interim chief executive said, marking a key step in the company’s international expansion and the kingdom’s push to build a domestic electric vehicle industry.
Speaking on the sidelines of the Future Minerals Forum in Riyadh, interim Chief Executive Marc Winterhoff said Lucid has started transferring equipment to its new plant at King Abdullah Economic City (KAEC) near Jeddah. “We are on track,” Winterhoff said, adding that the company plans to ramp up output over several years, according to remarks reported by Bloomberg.
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Lucid opened its first manufacturing facility in Saudi Arabia in September 2023, becoming the first automaker to assemble vehicles in the kingdom. To date, operations have been limited to semi-knockdown assembly, with vehicles partially built elsewhere and completed locally. The KAEC site is expected to enable full vehicle production once operational.
Winterhoff said Lucid is targeting annual production capacity of up to 150,000 vehicles by 2029, although no precise start date for full manufacturing was disclosed. The facility is located within a Special Economic Zone on the Red Sea, offering incentives such as tax exemptions and zero customs duties as Saudi Arabia seeks to attract global automakers.
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Saudi Arabia’s Public Investment Fund is Lucid’s largest shareholder, holding more than 50% of the company after investing over $8 billion since 2018. Winterhoff said Lucid continues to explore additional funding sources alongside its relationship with the fund. In a subsequent clarification, Lucid said there had been no change in its ties with the PIF and that the company continues to attract outside investors.
Lucid produced more than 18,000 vehicles in 2025, more than double its output the previous year, after overcoming production challenges earlier in the year. The company met its revised full-year guidance following higher output in the fourth quarter.
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Saudi Arabia has emerged as a focal point for global automakers, including Hyundai Motor Group, Tesla and BYD, as the kingdom invests heavily in electric vehicles and clean technologies under its Vision 2030 plan to diversify its economy away from oil.
