American EV maker Lucid Motors (LCID) is increasing abroad. Lucid’s EVs at the moment are out there for lease for the primary time in Saudi Arabia.
First Lucid EVs out there for lease in Saudi Arabia
Lucid produced 2,173 electrical vehicles within the second quarter of 2023, delivering 1,404. The numbers have been disappointing, exhibiting a downward pattern in manufacturing and flat deliveries over the previous two quarters.
After its strongest quarter in This autumn 2022, Lucid’s manufacturing has fallen over 37%, whereas deliveries are down 27%.
On the constructive aspect, Lucid did have an essential replace. The corporate introduced it “started materials shipments to the Kingdom of Saudi Arabia.”
Saudi Arabia’s Public Funding Fund (PIF) is Lucid’s largest shareholder. After injecting round $1.8 billion final month as a part of a $3 billion inventory sale, Saudi’s PIF owns roughly 60.5% of the EV maker’s frequent inventory. The fund has invested round $9 billion in Lucid up to now.
Not even per week after Lucid revealed materials shipments have begun to Saudi Arabia, the primary EVs at the moment are out there for lease, in line with experiences. The Saudi Put up stated on Twitter Tuesday:
For the primary time within the Kingdom, Saudi leasing firms begin leasing luxurious electrical “Lucid” vehicles contained in the Kingdom.
Lucid revealed final yr that the Authorities of Saudi Arabia agreed to buy at the very least 50,000 EVs over the following ten years. The deal is a part of the Kingdom’s “Saudi Imaginative and prescient 2030” effort to cut back emissions and put the nation on observe for secure financial development.
The Kingdom goes electrical
Saudi Arabia’s economic system at the moment is determined by oil, accounting for almost half of the nation’s GDP. The technique consists of constructing superior EVs and exporting them whereas rising the contribution of non-oil exports to non-oil GDP to 50%, in comparison with roughly 16% at the moment. Abdulla Al-Swaha, Saudi’s Minister of Communications and IT, defined in October:
In 2026, the Kingdom will manufacture and export greater than 150,000 electrical vehicles.
Al-Swaha stated its majority possession in Lucid “has positioned the Kingdom amongst developed nations.” He added that building started at Lucid’s first manufacturing plant within the area final Might.
The manufacturing facility in King Abdullah Financial Metropolis, Saudi Arabia, will start re-assembling Lucid Air fashions pre-built at its Casa Grande, Arizona facility within the US.
Full manufacturing is predicted to start out by 2024, with 155,000 automobile manufacturing capability per yr as soon as up and operating.
Lucid additionally just lately entered right into a strategic partnership to offer Aston Martin with its superior EV powertrain tech. CEO Peter Rawlinson stated the deal, value round $450 million, is simply the beginning of Lucid’s tech enterprise.
Regardless of a downturn in manufacturing and deliveries this yr, Lucid is making some strikes that would assist flip issues round. Licensing and promoting its proprietary EV powertrain tech could possibly be a possible recreation changer for Lucid to drive extra earnings.
Hopefully, with its first EVs out there for lease in Saudi Arabia and a brand new income supply, Lucid can return to development within the second half of the yr.
Picture credit score: The Saudi Put up / Theeb hire a automobile
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