American EV maker Lucid Motors (LCID) is expanding overseas. Lucid’s EVs are now available for lease for the first time in Saudi Arabia.
First Lucid EVs available for lease in Saudi Arabia
Lucid produced 2,173 electric cars in the second quarter of 2023, delivering 1,404. The numbers were disappointing, showing a downward trend in production and flat deliveries over the past two quarters.
After its strongest quarter in Q4 2022, Lucid’s production has fallen over 37%, while deliveries are down 27%.
On the positive side, Lucid did have an important update. The company announced it “began material shipments to the Kingdom of Saudi Arabia.”
Saudi Arabia’s Public Investment Fund (PIF) is Lucid’s largest shareholder. After injecting around $1.8 billion last month as part of a $3 billion stock sale, Saudi’s PIF owns roughly 60.5% of the EV maker’s common stock. The fund has invested around $9 billion in Lucid to date.
Not even a week after Lucid revealed material shipments have begun to Saudi Arabia, the first EVs are now available for lease, according to reports. The Saudi Post said on Twitter Tuesday:
For the first time in the Kingdom, Saudi leasing companies start leasing luxury electric “Lucid” cars inside the Kingdom.
Lucid revealed last year that the Government of Saudi Arabia agreed to purchase at least 50,000 EVs over the next ten years. The deal is part of the Kingdom’s “Saudi Vision 2030” effort to reduce emissions and put the nation on track for stable economic growth.
The Kingdom is going electric
Saudi Arabia’s economy currently depends on oil, accounting for nearly half of the nation’s GDP. The strategy includes building advanced EVs and exporting them while increasing the contribution of non-oil exports to non-oil GDP to 50%, compared to roughly 16% today. Abdulla Al-Swaha, Saudi’s Minister of Communications and IT, explained in October:
In 2026, the Kingdom will manufacture and export more than 150,000 electric cars.
Al-Swaha said its majority ownership in Lucid “has placed the Kingdom among developed countries.” He added that construction began at Lucid’s first manufacturing plant in the region last May.
The factory in King Abdullah Economic City, Saudi Arabia, will begin re-assembling Lucid Air models pre-built at its Casa Grande, Arizona facility in the US.
Full production is expected to start by 2024, with 155,000 vehicle manufacturing capacity per year once up and running.
Lucid also recently entered into a strategic partnership to provide Aston Martin with its advanced EV powertrain tech. CEO Peter Rawlinson said the deal, worth around $450 million, is just the start of Lucid’s tech business.
Electrek’s Take
Despite a downturn in production and deliveries this year, Lucid is making some moves that could help turn things around. Licensing and selling its proprietary EV powertrain tech could be a potential game changer for Lucid to drive additional profits.
Hopefully, with its first EVs available for lease in Saudi Arabia and a new revenue source, Lucid can return to growth in the second half of the year.
Image credit: The Saudi Post / Theeb rent a car