Saudi Arabia's National Treasury will initially buy 50,000 cars, with the option to buy up to 50,000 more over 10 years. This is one of the largest EV purchase commitments ever made...
Recently, Lucid Automotive announced that the Saudi Arabian government has committed to purchase up to 100,000 vehicles, including the Air sedan and future Lucid models, over a ten-year period.
Saudi Arabia's National Treasury will initially buy 50,000 cars, with the option to buy up to 50,000 more over 10 years. This is one of the largest EV purchase commitments ever made, according to Lucid.
Peter Rawlinson, CEO and CTO of Lucid, said: "The delivery of up to 100,000 Lucid electric vehicles in Saudi Arabia is another pivotal moment in our acceleration of sustainable global transportation. We are delighted to be supporting Saudi Arabia in achieving its sustainable Development goals and net zero goals, like the Saudi Vision 2030 and the Saudi Green Initiative, bring our advanced luxury electric vehicles to Saudi Arabia.”
As part of the agreement, Saudi Arabia committed to purchase Lucid's existing Arizona plant and vehicles built and assembled at its future international manufacturing facility in Saudi Arabia.
According to the plan: Saudi Arabia is expected to order 1,000 to 2,000 vehicles per year in the initial stage, and the number will increase to 4,000 to 7,000 vehicles per year from 2025, when Lucid's plant in Saudi Arabia is expected to start production.
Deliveries of the first Lucid Air and future electric vehicles (likely the Gravity SUV) to Saudi Arabia must begin by the second quarter of 2023.
There is a reason behind buying trams in countries where gasoline is cheaper than water. The ten-year agreement is part of Saudi Vision 2030 and the Saudi Green Initiative, which aims to transform the kingdom through sustainable transport and technology. The agreement will support the government's drive to diversify the economy and provide Saudi Arabia with thousands of high-skilled jobs and economic benefits in line with Vision 2030.
The purchase price of the vehicle will be determined based on the lower of the applicable vehicle's standard retail price in Saudi Arabia and the applicable vehicle's standard retail price in the United States, Lucid said. Logistics and import costs, as well as other costs of delivering and certifying the vehicle in accordance with Saudi Arabian regulations, will be reflected in the price.
Notably, Saudi Arabia's Public Investment Fund (PIF), the country's sovereign wealth fund, owns a 61 percent stake in Lucid Group after investing $1 billion in the company in 2018. This decision is of great significance to Saudi Arabia’s economic transformation. As a major oil producer in the world, Saudi Arabia has a huge influence on international oil prices. The sovereign wealth fund’s holding of a large number of equity interests in new energy companies can also hedge against its own industrial risks, and can also upgrade its own industries, while providing thousands of high-skilled job opportunities and economic benefits. Saudi Arabia is indeed a good move.
