RIYADH: Lucid Motors, majority-owned by Saudi Arabia’s sovereign wealth fund, delivered 2,394 electric vehicles in the second quarter of this year, a 21.70 percent increase compared to the first quarter.
In a statement, the company said it also produced 2,110 vehicles during the same period.
Earlier in 2024, a cohort of analysts polled by investment research firm Visible Alpha forecast that Lucid would deliver 1,940 units in the second quarter.
Lucid posted this strong growth just a few months after it received an additional $1 billion investment from the Public Investment Fund.
In a filing to the US securities regulator, the company said the money will reach Lucid through a newly created series of convertible preferred stock, which can be converted into about 280 million shares.
PIF currently has a 60 percent stake in the company and has invested billions as part of its mandate to diversify the Kingdom’s economy beyond oil.
Moreover, Lucid manufactured 3,838 vehicles in the first half of this year, and the firm aims to make more than 5,162 cars by the year-end to meet its annual output forecast of 9,000 units.
Demand for electric vehicles has grown at a slower-than-expected pace in 2023, pressured by high borrowing costs, economic uncertainties and rising consumer affinity toward hybrid alternatives.
Electric vehicle manufacturers, including Lucid, have responded by slashing prices and offering incentives such as affordable financing options to lure consumers.
The company’s most popular car, Lucid Air’s Pure model, is currently available at $69,000.
Lucid’s Air luxury sedans compete with Tesla’s Model S and electric vehicles from Mercedes-Benz, BMW, Audi and Porsche, among other brands.
In September 2023, Lucid opened its first plant outside the US in Saudi Arabia, with an initial capacity of 5,000 electric vehicles a year.
Lucid is not the only electric vehicle car brand in which the government of Saudi Arabia has an interest.
In November 2022, the Kingdom’s Crown Prince Mohammed bin Salman announced the launch of Ceer, a government-owned enterprise that will design, manufacture and sell battery-powered vehicles in Saudi Arabia.
According to the Kingdom’s Ministry of Industry and Mineral Resources, Ceer is expected to contribute SR30 billion ($7.9 billion) to the country’s gross domestic product by 2034.
Additionally, in September 2023, PIF raised its stakes in luxury carmaker Aston Martin to 20.5 percent from 17.9 percent.
