When Lucid Group first entered the luxury electric vehicle market, few anticipated the pivotal role Saudi Arabia would play in its journey. With a substantial investment of $6.4 billion from the Saudi Public Investment Fund (PIF) since 2018, Lucid has transformed its vision into reality, setting the stage for a thriving future.
The Saudi Investment Catalyst
In the first quarter of this year, Lucid secured an additional $1 billion from Ayar Third Investment Company, a PIF affiliate, reinforcing the strong financial backing that has been instrumental to Lucid’s operations. This strategic partnership with the PIF has not only provided essential capital but also highlighted the Kingdom’s commitment to pioneering advancements in electric vehicle technology.
Lucid CEO and CTO, Peter Rawlinson, attributes the company’s distinct position in the market to two key elements: its innovative in-house technology and the robust partnership with the PIF. Despite facing a Q1 loss of $681 million, Lucid remains optimistic with over $5 billion in cash reserves, ensuring a solid foundation for the production and launch of the more affordable Gravity SUV, expected to roll out by late 2024.
Building a Global Presence
The Saudi investment has significantly contributed to Lucid’s growth, facilitating the construction of its cutting-edge EV factory in Casa Grande, Arizona, and the establishment of a second production facility in Saudi Arabia. This latter plant marks a historic milestone as the Kingdom’s first-ever auto manufacturing site, poised to serve emerging markets across the Middle East.
Production of the Lucid Air began last year in Saudi Arabia, with initial capabilities to produce 5,000 vehicles annually, set to expand to a remarkable 155,000 electric vehicles. The Saudi government has committed to purchasing up to 100,000 Lucid vehicles over the next decade, further cementing the strategic alliance.
Meanwhile, Lucid is expanding its Arizona factory to nearly 4 million square feet to accommodate the production of the Lucid Gravity SUV, enhancing quality processes, manufacturing flexibility, and overall efficiency. Gagan Dhingra, Lucid’s interim CFO, emphasized the company’s focus on growth and cost optimization as it enters a pivotal phase in its market evolution.
Future-Ready Innovations
Looking ahead, Lucid plans to launch a new mid-size EV platform by late 2026, signaling a robust pipeline of innovation. The Lucid Air sedan, the company’s flagship model, continues to capture consumer interest with deliveries already underway across the U.S., Canada, Europe, and the Middle East. In the first quarter alone, Lucid produced 1,728 Air sedans and delivered 1,967, showcasing the company’s production capabilities and readiness for future expansion.
Saudi Arabia’s investment in Lucid Group exemplifies the Kingdom’s vision for a sustainable future and its strategic role in the global shift towards electric mobility. As Lucid continues to innovate and expand, the opportunities for investors to partake in this transformative journey are immense.
