Lucid's Saudi Success: 800 Electric Vehicles Roll Off Production Line

Lucid Group Inc LCID has reportedly manufactured approximately 800 electric vehicles (EVs) at its Saudi Arabian production facility, concurrently training over 200 local employees.

What Happened: The EV manufacturer inaugurated its first international plant in Saudi Arabia in September, with an initial production capacity of 5,000 EVs per year. 

Lucid holds a purchase agreement with the Saudi Arabian government to sell up to 100,000 vehicles over the next decade.

The vehicles were initially built in Arizona and then transformed into semi-knockdown kits, undergoing final assembly at the Saudi Arabian factory. The vehicles are not counted as factory-gated until this final assembly.

As reported by Reuters, Lucid has assembled approximately 800 cars at its Saudi Arabian facility since its opening, according to the company’s Middle East managing director, Faisal Sultan. He emphasized that the primary focus is on training personnel for the anticipated opening of a fully operational factory capable of manufacturing cars by 2026.

Construction for the facility has commenced, but the timeline for its opening depends on supply chains and workforce development.

Despite Lucid’s primary operations being in the U.S., it is 60% owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF). The PIF has invested around $5.4 billion in Lucid since 2018.

Why It Matters: During Lucid’s third-quarter earnings call, the company noted that it had shipped approximately 700 EVs to Saudi Arabia for final assembly.

While Lucid had aimed to deliver more vehicles in Saudi Arabia in the third quarter, the scale-up process took longer than expected, according to the company’s CFO, Sherry House. Deliveries are expected to increase in the fourth quarter.

Lucid reported third-quarter revenue of $137.81 million and a quarterly loss of 28 cents per share while producing 1,550 vehicles. To align deliveries with production, the company is adjusting its target to produce 8,000-8,500 vehicles this year, down from the initial projection of over 10,000 units.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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