Lucid Expands Global Footprint With Saudi Manufacturing Push

Core Insights - Lucid Group, Inc. is set to begin full-scale vehicle manufacturing in Saudi Arabia, marking a significant step in its global expansion strategy [1][11] - The new facility in King Abdullah Economic City aims for an annual production capacity of 150,000 vehicles by 2029 [2][11] - The Public Investment Fund of Saudi Arabia is Lucid's largest shareholder, having invested over $8 billion since 2018 [4][11] Manufacturing and Production - The KAEC facility will transition from an assembly plant to a complete manufacturing facility, producing car bodies, battery packs, and final assembly locally [5] - Lucid produced over 8,400 vehicles in Q4 2025, doubling its total annual production to 18,378 vehicles compared to the previous year [7] - The gradual ramp-up of production is expected to support Lucid's global growth ambitions [9] Market Context - Lucid is currently the only company selling vehicles manufactured in Saudi Arabia, but competition is anticipated as other automakers, including Hyundai, plan to establish factories in the region [6] - The Saudi government is offering incentives such as 0% taxes in special economic zones to attract EV manufacturers [6] - The move to local production aligns with Saudi Arabia's goal to reduce oil dependence and become a clean energy and technology hub [8] Strategic Implications - Lucid's expansion in Saudi Arabia represents a long-term strategic bet on global scale and cost efficiency, supported by strong government backing [9] - The KAEC facility is expected to play a central role in Lucid's future growth as production ramps up [9]