Lucid Announces Deal for Purchase of Up to 100,000 Electric Vehicles

[pacific]

Lucid Announces Deal for Purchase of Up to 100,000 Electric Vehicles | Lucid Group, Inc.

Purchase commitment by the Government of Saudi Arabia by the Ministry of Finance to include award-winning Lucid Air and future Lucid models Among one of the largest-ever purchase commitments of its kind for sustainable electric vehicles Ten-year deal is part of Saudi Vision 2030 and Saudi Green

ir.lucidmotors.com

 

[Yugi]

Positive news for LCID.

 

[Boomer AZ]

So, Arizona is the proving grounds for Saudi Arabia. Great news!

 

[MPawelek]

Well, Sand is sand in both places….

 

[OCDC]

A bit of an after-hours stock price bump from the notice.

 

[rbbarry]

Note that Saudi Arabia’s public wealth fund holds an approximately 62% stake in the U.S.-based automaker...

Luxury EV maker Lucid scores order from Saudi government for up to 100,000 vehicles

Saudi Arabia's Ministry of Finance agreed to purchase at least 50,000 Lucids over the next 10 years, with an option to double that total.

www.cnbc.com

 

[Paladin732]

A bit of an after-hours stock price bump from the notice.

I’ve been avoiding looking at any of my stocks for the past month. LCID especially

 

[Dkars1]

Yep not sure how impressive it is when your largest order comes from your largest shareholder, but hey it’s a big number.

 

[digiboxer]

Yep not sure how impressive it is when your largest order comes from your largest shareholder, but hey it’s a big number.

Exactly--the Saudis (62% owners) need to protect their investment AND avoid having to put in more money to do so. With the stock price crashing, the stock market becomes an increasingly less attractive source of new capital.

This "order"--10,000 units over a ten-year period--looks like a bit off a publicity stunt to put a net under the stock price

 

[MPawelek]

Who cares? As long as it helps the company to survive so we aren’t driving the new Delorean is fine by me…..

 

[mnewber1]

Who cares? As long as it helps the company to survive so we aren’t driving the new Delorean is fine by me…..

It will have an impact of getting customer cars out while they try to fulfill this order since this is set to start now vs 2025 when the Saudi plant is supposed to be done.

 

[pacific]

Exactly--the Saudis (62% owners) need to protect their investment AND avoid having to put in more money to do so. With the stock price crashing, the stock market becomes an increasingly less attractive source of new capital.

This "order"--10,000 units over a ten-year period--looks like a bit off a publicity stunt to put a net under the stock price

I disagree. It is clearly aligned with both parties' strategic goals and objectives. Win-win situation.

Similar to Amazon and Rivian.

 

[Balin]

I think it does indicate that there is minimal long term funding risk to the company, irrespective of the stock price.

 

[Maverick]

This "order"--10,000 units over a ten-year period-

Believe it's 100,000 units.

 

[mnewber1]

Believe it's 100,000 units.

I think they meant 10,000 X Ten Years

 

[digiboxer]

I think they meant 10,000 X Ten Years

Per Bloomberg:

"The automaker reached a deal with Saudi Arabia’s Ministry of Finance for 50,000 EVs over that span, with the option for another 50,000, according to a statement Tuesday. Lucid said it would start delivering the vehicles by the second quarter of 2023.


Saudi Arabia owns roughly 61% of Lucid through its sovereign wealth fund. Lucid recently started production of its first model, the Air sedan, at its factory in Casa Grande, Arizona, though it announced in February that it plans to build a second automotive factory in Saudi Arabia. The purchase agreement announced Tuesday is for the Air and other “future models.”

The deal initially calls for 1,000 to 2,000 EVs annually, increasing to between 4,000 and 7,000 annually starting in 2025."