Lucid Group Inc , an electric manufacturer, announced on Tuesday that it has secured an agreement with the Saudi government for the purchase of up to 100,000 of its vehicles over the next ten years.
According to Lucid, Saudi Arabia has agreed to acquire 50,000 vehicles under the arrangement, with the option to buy another 50,000 vehicles over the next ten years.
Following the announcement, Lucid’s stock surged 5.4 percent in extended session.
The acquisition is the latest collaboration between the California-based electric vehicle startup and Saudi Arabia’s Public Investment Fund, which owns around 61 percent of Lucid.
Lucid, which presently produces its vehicles in Arizona, wants to open its first foreign manufacturing facility in Saudi Arabia later this year, with the capacity to produce up to 150,000 vehicles per year.
The Saudi government is anticipated to purchase automobiles from both factories, according to Lucid.
The vehicles are planned to be delivered no later than 2023, with order numbers ranging from 1,000 to 2,000 per year at first, growing to 4,000 to 7,000 per year by 2025.
According to a Lucid spokesman, the business has not given any discounts as part of the deal.
In a regulatory filing, Lucid stated that the Saudi government will pay the lowest of the US or Saudi retail prices, plus import and other delivery charges.
Due to supply chain issues, the manufacturer, which aims to compete with Tesla Inc, lowered its 2022 production forecast from 20,000 to 12,000 to 14,000 vehicles in February.
In October, it began delivering its $169,000 Lucid Air premium sedan in the United States, and it intends to start delivering to Canadian customers this spring.
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