Lucid Motors and Saudi Arabia agreed on the purchase of up to 100,000 electric vehicles (EVs), at least in the next decade.
Lucid Motors and Saudi Arabia
Saudi Arabia has been a long-time supporter of the American automaker Lucid Motors. In fact, it basically owns the majority of the EV maker through its wealth fund, amassing about 61% of ownership, according to a recent report by Bloomberg.
Although the production of the first-ever EV of Lucid Motors, the Air, is situated in its facility in Arizona, the carmaker previously announced last February that it plans to start manufacturing its vehicles in Saudi Arabia. It should serve as the second factory of the budding automaker.
Lucid Motors, Saudi Arabia Deal
This time around, as per a news story by Electrek, the electric automaker forged a massive deal with the Kingdom of Saudi Arabia and its Ministry of Finance, selling a staggering 100,000 units of its EVs.
To be more precise, the Government of Saudi Arabia only committed to purchasing a total of 50,000 EVs from none other than Lucid Motors over the next decade.
On top of that, though, Lucid Group gave the Western Asian country an option to double its purchase in the next ten years, making it 100,000 in total.
Lucid Group said that the commitment of the Kingdom of Saudi Arabia to buy at least 50,000 is part of its two sustainability projects, the Saudi Green Initiative and the Saudi Vision 2030.
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Lucid Motor EV Deliveries to Saudi Arabia
The Kingdom agreed that the first deliveries of the Lucid EVs should not exceed the second quarter of 2023.
The deal specifically includes the current and upcoming EVs of Lucid Motors, such as the Air sedan and Gravity SUV.
For the first two years, Saudi Arabia is expected to order around 1,000 to 2,000 EVs from 2023 to 2024.
However, starting in 2025 and beyond, the EV orders should dramatically increase by 4,000 to 7,000 yearly. By that time, the production of Lucid Motors is also predicted to have scaled up. Consequently, deliveries should also start ramping up.
The CEO and CTO of Lucid, Peter Rawlinson, said in his statement that the delivery of 100,000 EVs to the Kingdom "represents another pivotal moment in our acceleration of sustainable transportation worldwide."
As for the price of the EVs in the massive deal, there's a rule on how to determine it. Lucid says that it would primarily be based on whichever is lower, either the retail price in the United States or Saudi Arabia. Not to mention that it also includes other costs like logistics and importing fees.
