In a recent update unveiled by the Arabic publication Maal, Lucid Motors’ upcoming AMP-2 factory, situated in the vibrant city of Jeddah, is poised to initiate production operations by September 2023, a mere month away. This facility is strategically designed to assemble Lucid’s flagship model, the Air, utilizing components sourced from the AMP-1 plant located in Arizona. Notably, the inaugural batch of Air vehicles is slated for delivery to the Saudi Arabian government, marking a significant milestone before the year draws to a close.
Looking ahead, Lucid has set an ambitious production goal of reaching an annual output of 150,000 units by the year 2026. To bolster this endeavor, Saudi Arabia has meticulously curated an incentive package totaling approximately $3 billion, aimed at facilitating the growth of the Jeddah production site. This strategic investment is further solidified by Saudi Arabia’s commitment to procure 100,000 EVs from Lucid over the course of a decade. It is essential to highlight that Saudi Arabia holds a substantial stake as a majority investor in Lucid Motors.
https://twitter.com/Maaalnews/status/1688433567167062016
However, the journey has not been without its challenges. Lucid Motors reported a somewhat lackluster performance in the Q2 of 2023. During this period, the company managed to produce 2,173 EVs at its Arizona facility, with deliveries of 1,404 units transpiring between April and June. This figure falls short of the initial annual production target of 14,000 units set for 2023 at the Casa Grande plant in Arizona, which was subsequently revised downward to 10,000 units. Consequently, the company is grappling with an increasing inventory, reflecting the current struggle to stimulate substantial interest in its luxury EV offerings.
In response to these market dynamics, Lucid Motors has implemented a series of measures to enhance its market traction and maximize sales potential. Among these strategies, the company has resorted to price reductions aimed at maintaining competitiveness within the rapidly evolving EV landscape.
