Lucid Motors, the American luxury electric vehicle (EV) manufacturer backed by Saudi Arabia’s Public Investment Fund (PIF), has further solidified its presence in the Middle East by establishing its regional headquarters in Riyadh, Saudi Arabia. The new office is located in the King Abdullah Financial District (KAFD), complementing the company’s global headquarters in Newark, California, and its European base in Amsterdam, Netherlands. Lucid announced this development on LinkedIn, sharing a video showcasing its new office in Riyadh’s skyline.
PIF’s Strategic Investment in Lucid Motors
Saudi Arabia’s PIF has played a pivotal role in Lucid’s growth. In 2018, PIF invested $1 billion in Lucid Motors to launch its first electric vehicle, the Lucid Air. This investment marked a significant milestone in the partnership between Lucid and Saudi Arabia. Over time, PIF’s stake in Lucid has grown to about 60%, with total investments amounting to approximately $8 billion. This substantial backing underscores Saudi Arabia’s commitment to advancing sustainable transportation and reducing its dependence on oil.
Lucid’s Manufacturing Expansion in Saudi Arabia
In September 2023, Lucid commenced operations at its first international manufacturing plant, located in King Abdullah Economic City (KAEC), Saudi Arabia. Initially, the facility assembles Lucid Air vehicle kits pre-manufactured at the company’s U.S. AMP-1 Manufacturing Facility in Casa Grande, Arizona. The plant aims to transition from assembly to full manufacturing, with a future capacity to produce 155,000 electric vehicles per annum. This expansion aligns with Saudi Arabia’s Vision 2030, focusing on economic diversification and technological innovation.
Lucid’s Market Presence in the Middle East
Lucid has been actively expanding its presence in the Middle East. Earlier this month, the company delivered its first vehicles in the United Arab Emirates (UAE), marking its sixth market globally. In the UAE, the Lucid Air sedan starts at $84,300, including a $1,000 Charging Allowance and two years of complimentary Lucid Care scheduled maintenance. Despite having only one showroom in the UAE, Lucid’s vice-president and managing director of the Middle East region, Faisal Sultan, stated that the company “had many reservations.” Lucid’s expansion plans include a massive service center in Dubai and upcoming sales and service facilities in Abu Dhabi.
Lucid’s Financial Performance and Future Prospects
In the second quarter of 2024, revenue from Middle East sales accounted for 20.2% of Lucid’s total revenue. By the third quarter, that percentage had risen to 24.85%. This growth reflects the increasing demand for electric vehicles in the region. Additionally, Lucid’s Grand Touring variant of the Gravity SUV has received an official EPA-estimated range of 450 miles. The company started production of the SUV last week at its plant in Casa Grande, Arizona, signaling its commitment to expanding its product lineup and meeting global demand.
Contribution to Saudi Vision 2030
Lucid Motors’ strategic partnership with Saudi Arabia’s Public Investment Fund and its expansion in the Middle East highlight the company’s commitment to growth and innovation in the electric vehicle market. With the establishment of its Middle East headquarters in Riyadh and the commencement of manufacturing operations in KAEC, Lucid is well-positioned to contribute to Saudi Arabia’s Vision 2030 and the global shift towards sustainable transportation.
