The largest shareholders of Lucid Group have agreed to buy 100,000 electric cars over the next ten years.
The Saudi government, affiliated with the Kingdom of Saudi Arabia Public Investment Fund with 61% Lucid, made an initial commitment to buy 50,000 Lucid’s EV with the option to purchase an additional 50,000 cars over the same 10-year period. according to a press release Tuesday. Lucid shares rose 5% after market trading.
Promises include Lucid Air, an expensive sedan launched last year, as well as future models such as the upcoming Gravity SUV. The cars will come from the Lucid factory in Arizona and then from the future factory in Saudi Arabia. The EV sales deal is part of the Kingdom’s 2030 Vision plan, which seeks to transform its economy from oil.
The Saudi Arabian Public Investment Fund, or PIF, has invested $ 1 billion in Lucid Motors 2018 while still being a privately held company. The investment deal comes six weeks after Tesla CEO Elon Musk tweeted that he was considering taking Tesla privately for $ 420 a share and checked the right investment to jump. Musk suggested at the time that the Saudi asset fund was interested in supporting the company move from public to private.
The investment came at a crucial time for Lucid, who was struggling to raise the funds needed to produce Lucid Air. PIF persisted in its investment when Lucid became a publicly traded company by joining a privately owned company. Today, PIF owns 1,015,252,523 shares of Lucid.
While decades-old contracts may fail to provide a rapid sales increase, it looks like this buying case will begin this year. Demand numbers are expected to be between 1,000 and 2,000 vehicles per year and an increase of between 4,000 and 7,000 vehicles per year from 2025. Access will be beyond the second quarter of 2023.
It is unclear how exactly the kingdom will pay for Lucid’s cars. However, the legal terms posted on the announcement indicate that according to TechCrunch’s analysis of the language that the kingdom will get the lowest price compared to MSRP in the US and MSRP in Saudi Arabia because Lucid has not yet built MSRP internally. The kingdom.