JAKARTA - US electric car maker Lucid Group Inc announced on Tuesday, April 26 that it has signed an agreement with the government of Saudi Arabia for the purchase of up to 100,000 vehicles over the next 10 years.
In his statement, Lucid also said Saudi Arabia was committed to purchasing 50,000 vehicles under the agreement, with the option to purchase an additional 50,000 vehicles over a ten-year period.
The announcement sent Lucid's stock up 5.4% in extended trading following the announcement.
The deal marks the latest tie-up between the California-based EV company and Saudi Arabia, of which the Saudi Arabian Public Investment Fund, Lucid's largest shareholder, holds an estimated 61% stake in the company.
#LucidMotors announces deal with Government of Saudi Arabia for purchase of up to 100,000 vehicles over a ten-year period. #DreamAheadhttps://t.co/xPt6Goad3D pic.twitter.com/aDKgUxDfIo
— Lucid Motors (@LucidMotors) April 26, 2022
Lucid, which currently manufactures its vehicles at a factory in Arizona, also plans to build its first overseas production plant in Saudi Arabia later this year. They hope to produce up to 150,000 vehicles per year with the construction of the new factory.
"The vehicles purchased by the Saudi government are expected to come from both factories", Lucid said, as quoted by Reuters.
Vehicle deliveries are expected to begin no later than 2023, with initial order numbers ranging from 1,000 to 2,000 per year, and increasing to between 4,000 and 7,000 from 2025.
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A Lucid spokesman said the company had not offered any discounts on any vehicles under the agreement.
Lucid in the regulatory filing said the Saudi government would pay the retail price at the US or Saudi price, whichever is lower, in addition to import fees and other shipping costs.
Lucid, which looks set to compete with Tesla Inc, in February slashed its 2022 production forecast from 20,000 vehicles to 12,000 and 14,000 vehicles this year due to supply chain challenges.
The company began shipping the $169,000 Lucid Air premium sedan in the United States in October and said it will ship it to Canadian customers starting this spring.
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