Saudi Arabia, the top oil exporter, signs an agreement to buy up to 100k Lucid EVs

The U.S.-based electric vehicle maker, Lucid Motors, announced in a press release that the company and the world’s largest oil exporter, the Government of Saudi Arabia, have signed an agreement concerning the purchase of 100,000 electric vehicles.

According to the agreement, the Middle Eastern country has committed to initially buying 50,000 vehicles and has the option of buying up to an additional 50,000 vehicles over the same period.

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Lucid’s CEO and CTO Peter Rawlinson said, "Delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide."

Rawlinson continued, "We are delighted to be supporting Saudi Arabia in achieving its sustainability goals and net zero ambitions, as outlined by Saudi Vision 2030 and the Saudi Green Initiative, by bringing our advanced luxury EVs to Saudi Arabia."

As part of the agreement, the Government of Saudi Arabia has pledged to purchase the company's vehicles, including its spacious Lucid Air and other future models, built and assembled at Lucid’s existing Arizona factory and its future international manufacturing facility in Saudi Arabia. The order quantity is expected to range from 1,000 to 2,000 vehicles annually and increase to between 4,000 and 7,000 vehicles annually starting in 2025, with the delivery of the vehicles required to commence no later than the second quarter of 2023.

Supporting Vision 2030

"This agreement is a significant move that supports the key objectives of Vision 2030 including diversifying and transforming the economy, society and lives of the people of Saudi Arabia, building new sectors fit for the future and creating skilled jobs for future generations. It also comes in alignment with the Saudi Green Initiative and the Middle East Green Initiative," the Saudi ministry of finance said in a statement. 

This agreement will support Saudi Arabia’s drive to diversify the economy, provide thousands of highly skilled job opportunities, and bring economic benefit to the Kingdom in line with Vision 2030.

The buying price of the vehicles will be determined based on the lower standard retail price for the applicable vehicle in Saudi Arabia and the standard retail price for the applicable vehicle in the U.S., plus the logistics and importation costs, and other costs of delivering and homologating vehicles to regulations of Saudi Arabia.

In 2018, Lucid received a massive influx of funding from the Public Investment Fund of Saudi Arabia (PIF), which owns 61 percent of Lucid. More recently in 2021, the company secured $1 billion in investments from PIF to build a manufacturing facility in Saudi Arabia, but the facility remains a blueprint until now.

Lucid will be shipping its electric vehicles from its Arizona plant to Saudi Arabia for the time being.

Though it seems a bit ironic for the top oil exporter to purchase that many electric vehicles, we can’t deny that it's good for the environment.