Photo: Lucid Motors | Edited
Lucid Motors, the fledgling US luxury EV maker with Saudi Arabia ties, announced entering the Chinese market. Lucid hired ex-NIO and Ford executive Zhu Jiang to lead China operations, which might include a local production facility.
Lucid is struggling to stay afloat amid adverse market conditions caused by high inflation and a crumbling of its market segment. Still, the EV startup has the backing of powerful Saudi Arabia's Private Investment Fund (PIF), which has bigger ambitions to establish its own automotive industry. Although declining sales of $100,000+ luxury cars don't give Lucid much hope, the company still has enough money to continue operations and forge a path to profitability.
Lucid has already started selling the Air luxury sedan in Saudi Arabia and several European countries and is eyeing other markets, including China. As the biggest EV market in the world and with a healthy appetite for luxury, China is the perfect place to sell the expensive Lucid Air. The company established its China headquarters and hired industry veteran Zhu Jiang, a former executive at NIO, Ford, BMW, and Lexus, to lead the operations. During his time at Ford, Zhu helped launch the Mustang Mach-E production in China.
Zhu Jiang confirmed that Lucid is preparing to sell the Air sedan in China. For now, the cars are imported from the US, but Reuters discovered that Lucid is also considering local production. The information was confirmed by someone familiar with the matter who was not authorized to speak to the media. Jiang declined to comment on plans for local production. However, this would make perfect sense considering the economic advantages of producing the Air Sedan and the upcoming Gravity SUV in China.
Lucid recently announced plans to raise about $3 billion through a stock offering, mainly from Saudi Arabia's PIF. The investment fund already owns more than 60% of the company, with its stake currently worth $9 billion. Lucid desperately needs the money, as its cash reserves are almost depleted, and the development of the Gravity SUV is taking a toll. Lucid Motors could go out of business as early as next year without new funds.
The luxury EV startup has just started selling the Air sedan in Saudi Arabia, as confirmed by Faisal Sultan, Vice President and Managing Director of Lucid Middle East. In an interview with Argaam, Sultan said the company is seeing high demand for the Air models, which have a starting price of 440,000 Riyal (about $117,000).
Lucid is also building its second production facility in Saudi Arabia, fulfilling the country's ambitions to establish its own automotive industry. The facility will start this year by assembling cars from CKD kits produced in Lucid's main factory in Arizona. The factory will begin local production in 2025 or 2026, with a planned capacity of 150,000 cars per year.
Lucid has already started selling the Air luxury sedan in Saudi Arabia and several European countries and is eyeing other markets, including China. As the biggest EV market in the world and with a healthy appetite for luxury, China is the perfect place to sell the expensive Lucid Air. The company established its China headquarters and hired industry veteran Zhu Jiang, a former executive at NIO, Ford, BMW, and Lexus, to lead the operations. During his time at Ford, Zhu helped launch the Mustang Mach-E production in China.
Zhu Jiang confirmed that Lucid is preparing to sell the Air sedan in China. For now, the cars are imported from the US, but Reuters discovered that Lucid is also considering local production. The information was confirmed by someone familiar with the matter who was not authorized to speak to the media. Jiang declined to comment on plans for local production. However, this would make perfect sense considering the economic advantages of producing the Air Sedan and the upcoming Gravity SUV in China.
Lucid recently announced plans to raise about $3 billion through a stock offering, mainly from Saudi Arabia's PIF. The investment fund already owns more than 60% of the company, with its stake currently worth $9 billion. Lucid desperately needs the money, as its cash reserves are almost depleted, and the development of the Gravity SUV is taking a toll. Lucid Motors could go out of business as early as next year without new funds.
The luxury EV startup has just started selling the Air sedan in Saudi Arabia, as confirmed by Faisal Sultan, Vice President and Managing Director of Lucid Middle East. In an interview with Argaam, Sultan said the company is seeing high demand for the Air models, which have a starting price of 440,000 Riyal (about $117,000).
Lucid is also building its second production facility in Saudi Arabia, fulfilling the country's ambitions to establish its own automotive industry. The facility will start this year by assembling cars from CKD kits produced in Lucid's main factory in Arizona. The factory will begin local production in 2025 or 2026, with a planned capacity of 150,000 cars per year.
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