Lucid Group mentioned that the federal government of Saudi Arabia has agreed to purchase as much as 100,000 of its electrical automobiles over the subsequent ten years.
Saudi Arabia’s public wealth fund holds an roughly 62% stake within the U.S.-based automaker, which started manufacturing of its Air luxurious sedan final September.
Lucid’s shares had been up greater than 4% in after-hours buying and selling following the information.
Saudi Arabia’s Ministry of Finance has agreed to purchase not less than 50,000 of its automobiles over the subsequent 10 years, with an choice to purchase a further 50,000 over the identical interval, Lucid mentioned.
The purchases will embody automobiles constructed at Lucid’s present manufacturing facility in Arizona in addition to a brand new manufacturing facility it plans to construct in Saudi Arabia, and will likely be a mixture of Air sedans and upcoming new fashions.
Saudi Arabia’s preliminary orders will likely be modest, between 1,000 and a pair of,000 automobiles per yr beginning in 2023. Deliveries to the oil-rich kingdom will enhance to between 4,000 and seven,000 per yr beginning in 2025, Lucid mentioned.
Provide-chain challenges have hampered Lucid’s efforts to ramp up manufacturing at its Arizona manufacturing facility. The corporate in February slashed its 2022 manufacturing steerage, saying it expects to construct simply 12,000 to 14,000 automobiles this yr, down from the 20,000 it had beforehand forecast.