Lucid Motors will begin full-scale EV production at its King Abdullah Economic City plant in Saudi Arabia in 2026, ramping to 150,000 vehicles per year by 2029. This move supports Saudi Arabia’s Vision 2030 to diversify from oil and positions Lucid to export locally-made luxury EVs globally while reducing import reliance. Readers tracking EV manufacturing shifts should note how this factory could stabilize Lucid’s finances amid ongoing losses.
Background: Lucid’s Growth and Saudi Ties
Lucid Motors, known for luxury electric sedans like the Lucid Air and SUVs like the Gravity, began production at its Arizona facility in 2021. Backed by Saudi Arabia’s Public Investment Fund (PIF), which owns over 50% and has invested more than €7 billion ($8 billion) since 2018, Lucid opened a semi-knock-down (SKD) assembly plant in Saudi Arabia in September 2023—the first for cars in the kingdom.
In 2025, Lucid doubled output to 18,378 vehicles from 9,000 in 2024, meeting its revised target of 18,000 despite early setbacks. Q4 2025 saw over 8,400 units produced, driven by Gravity SUV demand. Interim CEO Marc Winterhoff confirmed at the Future Minerals Forum in Riyadh that full production starts in 2026, with equipment already moving into the KAEC facility near Jeddah on the Red Sea. PIF funding may pause, pushing Lucid toward profitability or new investors; Q4 earnings are due February 24, 2026.
Key Specifications
| Model | Range (km) | 0-100 km/h (s) | Fast Charge (km in 11 min) | Starting Price (€) | Capacity |
|---|---|---|---|---|---|
| Lucid Gravity SUV | 724 | 3.6 | 321 | 68,200 (mid-range) | 7 seats |
| Lucid Air Sedan | Details not yet confirmed | Details not yet confirmed | Details not yet confirmed | 59,700 (US) | 5 seats |
| Upcoming Midsize | Details not yet confirmed | Details not yet confirmed | Details not yet confirmed | ~43,000 (projected) | Details not yet confirmed |
Table based on reported specs; Air Grand Touring holds a Guinness record of 1,205 km on a single charge. Saudi plant targets full vehicles from Air, Gravity, and midsize platforms.
Factory Transition and Production Ramp
Previously limited to SKD assembly of US-imported semi-complete cars, the KAEC plant will handle complete production from 2026, including heavy machinery installation underway. Output ramps gradually: initial volumes in 2026, scaling through 2027-2028 to 150,000 units annually by 2029—a massive leap from 2025’s 18,378. This sidesteps US tariffs and leverages 0% tax in special economic zones.
Saudi Arabia incentivizes this via Vision 2030, aiming for 30% EVs in Riyadh by 2030 and 5,000 fast chargers nationwide. Lucid leads as the only local assembler, but Hyundai and Ceer (Saudi’s homegrown EV brand) follow. Challenges include Gravity’s launch software bugs, addressed via team reshuffles.
Financial Pressures and Model Pipeline
Despite production gains, Lucid burns cash faster than revenue, with shares down over 60% in the past year amid US/Europe demand slowdowns. Middle East and Canada delivered 2,908 vehicles in 2025, with Gravity leading Q4. A midsize model, potentially priced at €43,000, starts production in the end of 2026 to boost volumes and rival Tesla.
PIF’s role is pivotal yet uncertain—no new funds expected, per Winterhoff. Global funding hunts and Saudi export ambitions are key watches.
Market Comparison
| Aspect | Lucid Saudi Plant | Tesla | BYD | Ceer (Saudi) |
|---|---|---|---|---|
| Start Date | 2026 (full) | Exploring Saudi | Exploring Saudi | 2026+ (first EV) |
| Capacity Target | 150,000 by 2029 | N/A | N/A | Details not yet confirmed |
| Investment | PIF >€7B | Global scale | China-focused | PIF-backed |
| Focus | Luxury (Air/Gravity) | Mass-market | Affordable | Local EV |
Verdict
Lucid’s Saudi factory launch in 2026 is a bold step to hit 150,000 units by 2029, leveraging PIF ties and Vision 2030 incentives for export growth. It suits luxury EV buyers seeking 700+ km range in Air/Gravity, but profitability hinges on midsize volume sales and funding—unanswered questions linger on exact 2026 output and PIF’s future role. Ideal for investors eyeing EV diversification beyond China/US.
