Lucid Group (LCID.O) has achieved a significant milestone by assembling nearly 800 cars in its Saudi Arabian factory since its inauguration in September. The California-based electric vehicle (EV) maker has prioritized the training of over 200 local employees as part of its commitment to the Saudi government, which pledged to purchase up to 100,000 vehicles from Lucid over the next decade.
The Saudi plant, operational since September, initially has the capacity to produce 5,000 EVs annually. Faisal Sultan, Lucid’s Middle East Managing Director and Global Vice-President, explained the manufacturing process, stating that the cars are initially fully built in Arizona, then de-assembled before being shipped to Saudi Arabia as kits. In Jeddah, local workers reassemble the vehicles, including reattaching the battery, adding trim and tires, and conducting thorough testing.
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, owns over 60% of Lucid and has invested significantly in the company to support the government’s ambition of establishing an EV industry hub.
Despite recording an accumulated loss of $9.5 billion as of September and posting losses every year since its inception, Lucid remains optimistic. The Saudi factory, while currently a relatively small operation, serves as a crucial training ground for the workforce. Sultan emphasized the importance of taking “baby steps” to ensure proper training for the staff, with the goal of preparing them for the opening of a complete build unit (CBU) in 2026.
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The CBU, a factory capable of independently manufacturing cars, is under construction, and Lucid aims to open it in due course. However, Sultan noted that the timing depends on supply chains and workforce development, emphasizing that it must make “business sense” for the company.
Half of the staff in the Saudi factory are locals, and Lucid’s approach of gradually increasing production allows for focused training, with approximately 16 to 20 vehicles assembled daily. The company envisions the CBU as a catalyst for encouraging key parts suppliers to establish a presence in Saudi Arabia, streamlining operations and enhancing efficiency.
Lucid’s commitment to fostering a local workforce, combined with its ambitious plans for future manufacturing capabilities, aligns with the broader vision of Saudi Arabia to become a prominent player in the growing electric vehicle industry.
Our Reader’s Queries
What does the Lucid Group do?
Lucid Group, Inc. is revolutionizing the EV space with their luxurious electric vehicles. Their mission is to inspire the adoption of sustainable transportation by creating the most captivating and stylish EVs in the world. Join them on this journey towards a greener future.
Is Lucid Group a Chinese company?
Lucid, a California-based company, creates innovative vehicles that are manufactured at their factory in Arizona. Established in 2007, Lucid has been majority-owned by the Public Investment Fund, the sovereign wealth fund of Saudi Arabia, since April 2019.
What will Lucid stock be worth in 5 years?
Lucid’s current stock price is at $3.80. However, the latest long-term forecast predicts that the price will steadily increase over the next few years. By the end of 2024, it is expected to reach $5, and then climb to $7 by the middle of 2026. The forecast also predicts that Lucid’s stock price will continue to rise, reaching $8 in 2027, $9 in 2028, $10 in 2029, and finally $12 in 2031. These projections suggest that Lucid is a promising investment opportunity for those looking to invest in the stock market.
Is Lucid Group stock a buy now?
With 2.29 billion shares outstanding, Lucid currently boasts a market capitalization of $8.64 billion. The question on everyone’s mind is whether Lucid stock is a buy, sell, or hold. According to the consensus rating, the answer is a resounding buy. So if you’re looking to invest in a promising company with a strong market presence, Lucid might just be the perfect choice for you.