California-based Lucid Group (NASDAQ:LCID) revealed Wednesday that the electric vehicle maker has assembled nearly 800 EVs at the company’s factory in Saudi Arabia since the location’s opening in September. The factory is a teaching location, focused on training over 200 local employees.
Lucid’s Saudi factory was built with the initial capacity to produce 5,000 EVs a year after the Saudi government pledged to buy up to 100,000 vehicles from Lucid over 10 years.
"The car is fully built in Arizona ... then it gets de-assembled... then the car gets shipped here as a kit, and that kit is then put back together," said Global Vice-President Faisal Sultan.
Employees at the Jeddah factory reconnect the battery, reinstall the trim and tires, and then proceed to re-test the vehicle, he further explained.
The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund holding over 60% ownership in Lucid, has injected billions into the company. This move aligns with the government's strategy to develop an electric vehicle (EV) industry hub.
As of September, Lucid has accumulated losses totaling $9.5 billion and has consistently reported annual losses since its inception.
"It (the Saudi factory) is a small operation for us. The reason why we have kept it this way is that we want to take baby steps in our approach of training people," said Sultan.
"You are doing roughly 16, 17 to 20 vehicles a day, rather than an hour, you can spend time with them to really train them," he said.
Lucid is gearing up its workforce, half of which comprises Saudi employees, in anticipation of the launch of a complete build unit (CBU) slated to open in 2026. Construction for this facility has already begun.
Sultan highlighted that the opening of the CBU hinges on factors such as supply chain readiness and the development of the workforce. He emphasized, "It has to make business sense at the end of the day for us to open that factory, but construction continues."
Shares of LCID are up 2.13% in afternoon trading on Wednesday.