Lucid to supply the Saudi government with up to 100,000 electric vehicles

The new 1050 horsepower Grand Touring Performance version becomes the most powerful version of the Lucid Air electric sedan.

Lucid Motors

Lucid Group said that the Saudi Arabian government agreed purchase up to 100,000 of its electric vehicles over the next ten years.

Saudi Arabia’s sovereign wealth fund about 62% of the shares at the American automaker, which began production of its Air luxury sedan last September.

Shares of Lucid rose more than 5% after hours after the news.

The Saudi Ministry of Finance has agreed to buy at least 50,000 vehicles over the next 10 years, with an option to buy another 50,000 over the same period, Lucid said.

The purchases will include vehicles built at Lucid’s existing plant in Arizona, as well as a new plant the company plans to build in Saudi Arabia, which will be a mix of Air sedans and future new models.

Saudi Arabia’s initial orders will be modest, with 1,000 to 2,000 vehicles a year starting in 2023. Deliveries to the oil-rich kingdom will increase to 4,000 to 7,000 a year starting in 2025, Lucid said.

Supply chain issues are hampering Lucid’s efforts to ramp up production at its Arizona plant. In February, the company slashed its 2022 production target, saying it plans to build 12,000 to 14,000 vehicles this year, compared to the 20,000 it previously forecast.

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