The government of Saudi Arabia will purchase 100,000 from Lucid over ten years.
On April 26, Lucid Group Inc. announced that the Government of Saudi Arabia would purchase 100,000 electric vehicles over a 10-year period. The deal will commence with an initial commitment of 50,000 units and an option to purchase an additional 50,000 vehicles during the same period.
“Delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide,” Lucid Group’s CEO and CTO, Peter Rawlinson said. “We are delighted to be supporting Saudi Arabia in achieving its sustainability goals and net-zero ambitions, as outlined by Saudi Vision 2030 and the Saudi Green Initiative, by bringing our advanced luxury EVs to Saudi Arabia.”
In 2023, Saudi Arabia’s orders will begin from 1,000 to 2,000 vehicles, increasing the numbers between 4,000 to 7,000 in 2025, Lucid said. The deliveries will start no later than the second quarter of 2023. The purchases will include Lucid Air and other future models Lucid will make in the following years. The vehicles will be built in their Arizona factory and later at the future plant in Saudi Arabia.
Lucid’s share rose by 5.4% after the announcement. It is also noted that Saudi Arabia’s Public Investment Fund is Lucid’s largest shareholder, with around 61% stake in the company.
The deal will support the government’s drive to diversify the economy, provide thousands of highly skilled job opportunities and provide economic benefit to the Kingdom in line with Vision 2030, Lucid said.
The purchase price of the vehicles will be based on comparable vehicle prices in Saudi Arabia and the United States market. However, the pricing would also take into account of logistics, import and other costs.