Lucid Group has announced that the Government of Saudi Arabia has committed to buying up to 100,000 vehicles over a ten-year period, including Air sedans and future Lucid models.
The Middle Eastern country's Ministry of Finance will purchase 50,000 vehicles initially, with an option to purchase up to an additional 50,000 units over the ten-year period. Lucid says this is one of the largest-ever purchase commitments of its kind for electric vehicles.
"Delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide. We are delighted to be supporting Saudi Arabia in achieving its sustainability goals and net zero ambitions, as outlined by Saudi Vision 2030 and the Saudi Green Initiative, by bringing our advanced luxury EVs to Saudi Arabia."
Peter Rawlinson, Lucid's CEO and CTO
As part of the agreement, Saudi Arabia has pledged to purchase vehicles built and assembled at Lucid's existing Arizona factory and its future international manufacturing facility in Saudi Arabia.
At the beginning, the Kingdom is expected to order 1,000 to 2,000 vehicles annually, with the quantity to increase to between 4,000 and 7,000 vehicles annually from 2025, when Lucid's Saudi Arabian plant is expected to start production.
The ten-year deal is part of the Saudi Vision 2030 and Saudi Green Initiative to transform the Kingdom via sustainable transportation and technologies. The agreement will support the government's drive to diversify the economy and provide thousands of highly skilled job opportunities and economic benefit to the Kingdom in line with Vision 2030.
Lucid Group's press release says the purchase prices of the vehicles will be determined based on the lower of the standard retail price for the applicable vehicle in Saudi Arabia and the standard retail price for the applicable vehicle in the United States. Logistics and importation costs, as well as other costs of delivering and homologating vehicles to regulations of Saudi Arabia, will be reflected in the prices.
It's worth noting that Saudi Arabia's Public Investment Fund (PIF), the country's sovereign wealth fund, owns 61% of Lucid Group following a $1 billion investment in the company in 2018.