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Lucid Found a Serious Buyer, It Might Sell Them Up to 100,000 EVs

Lucid struck a deal with the Saudi Arabian Government for up to 100,000 EVs. The understanding between the two parties extends over a decade. The move came after the Kingdom announced the Saudi Vision 2030 strategy. Lucid’s stock immediately went up.
The Lucid Air is Part of the Saudi Deal 20 photos
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Two months ago, we were telling you about Lucid’s plans to build their first non-American plant in Saudi Arabia. They picked the Gulf country even though the U.S. government doesn’t have the same good relationship with the Saudis they once had. Now things are starting to become clearer.

According to a press release coming from the American automaker, the Saudi Arabia government promised to buy 50,000 EVs over the next 10 years. The same agreement includes the possibility of purchasing another 50,000 Lucid models until 2032.

For now, even though Lucid wanted us to just read a headline and move on, the commitment taken by the public officials of Saudi Arabia includes just 50,000 EVs. The Lucid Air is part of this contract, but the company will deliver future models as well. The other 50,000 all-electric sedans and SUVs remain an option.

Further details of the deal haven’t been made public yet, but Lucid confirms it will start delivering 1,000 to 2,000 models per year. The number will grow as Lucid’s production facilities expand. The first cars that are part of this contract will arrive in Saudi Arabia starting from April 2023. Production will be ramped from 2025.

Lucid’s CEO and CTO said that “delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide.”

The price paid by the Saudi Arabian government for the first 50,000 EVs hasn’t been disclosed, but it will be determined by applying an interesting yet welcomed strategy. The automaker will use the lowest standard retail price for the Saudi Arabian market and the standard retail price applicable in the U.S., together with logistics, importation, and homologation costs to establish the value of the first 50,000 Lucid EVs that will be exported to the country or produced there after the factory will be built.

Lucid’s stock (NASDAQ: LCID) jumped to the previous level of $19.33 per share after the news reached investors.

press release
 
 
 
 
 

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