Lucid Motors has reached 1,000 vehicles assembled at its Saudi Arabia manufacturing facility since the plant’s opening in September 2023.
The local media outlet Arabian Gulf Business Insight reported on Thursday that Lucid is among eight manufacturers assembling vehicles in the Middle East as part of Saudi Arabia’s Vision 2030 industrial strategy.
The facility, known as Advanced Manufacturing Plant 2 (AMP-2), is Lucid‘s first factory outside the US and is located in King Abdullah Economic City near Jeddah.
“Eight brands assemble vehicles in the Middle East. With a hefty $8 billion investment from the Saudi Public Investment Fund (PIF), US electric vehicle manufacturer Lucid has the deepest pockets among the newcomers, assembling a stated 1,000 vehicles so far at its facility in King Abdullah Economic City,” AGBI reported.
Capacity Expansion Timeline
The plant currently operates in its first phase with capacity to assemble 5,000 Lucid Air sedans and Gravity SUVs annually.
Starting from late next year, when the plant becomes able to fully produce EVs, it will start ramping up capacity
Chief Financial Officer Taoufiq Boussaid said Wednesday the facility will reach its full 155,000-unit annual capacity in 2029, following a gradual ramp-up period.
“It will take some time to maximum the capacity usage and the ramp up, so the plan is sort of adoption as per our initial guidance towards the end of 2026, ’27, ’28, we will ramp up ’29 full capacity,” Boussaid said at the UBS Global Industrials and Transportation Conference.
The complete manufacturing facility at KAEC, including future expansion phases beyond the current assembly operations, is expected to produce up to 155,000 electric vehicles annually once fully operational.
“In terms of challenges, so I mean between the brand new plants, it would be full automated. So I mean it will take some time to maximum the capacity usage and the ramp up,” Boussaid stated.
Middle East Market Performance
The Newark, California-based company does not disclose vehicle deliveries by market or region, making it difficult to determine precise sales volumes in each geography.
The Middle East, represented by Saudi Arabia and the United Arab Emirates, generated $38.38 million in third-quarter revenue, down nearly 23% from $49.65 million a year earlier.
The region accounted for 11% of total quarterly revenue, making it Lucid‘s second-largest market despite the year-over-year decline.
UAE revenue stood at $378,000 in the third quarter, sharply down from $743,000 in the second quarter and indicating that just a few units were sold in the country based on Lucid‘s average selling price.
Manufacturing Hub
Boussaid said Wednesday that manufacturing in Saudi Arabia allows the company to source components from China without incurring US tariffs on Chinese auto parts.
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, has invested approximately $8 billion in Lucid and holds majority ownership of the electric vehicle maker.
