Saudi Arabia’s government will buy up to 100,000 electric cars from Saudi-backed Lucid Motors, state news agency SPA reported.
The agreement comes the month after Lucid Motors dropped its 2022 manufacturing target from 20,000 to a range between 12,000 and 14,000 amid logistics and supply chain challenges, Bloomberg reported.
The government struck a deal with an initial commitment to purchase 50,000 vehicles, with an option to purchase an additional 50,000 over a 10-year period.
Lucid, an electric car manufacturer, is majority owned by Saudi Arabia’s Public Investment Fund. The company has recently began production of its first model, the Air sedan, in the US, but announced earlier this year in February that it would build another factory in Saudi Arabia.
“Delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide,” Peter Rawlinson (below), Lucid’s CEO and CTO said in a statement.
“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.”
The purchase agreement includes the Lucid Air and other future models, with the order quantity expected to range between 1,000 to 2,000 vehicles annually and increase to between 4,000 and 7,000 vehicles annually in 2025. Delivery of vehicles is expected to begin in the Q2 2023.
“The purchase price 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, plus the logistics and importation costs, and other costs of delivering and homologating vehicles to regulations of Saudi Arabia,” the statement read.
