On Wednesday, April 27, Lucid Group Inc. (NASDAQ: LCID) reported a significant order. The corporation intends to begin implementing the order in 2023. The shares of the company rose in response to the news, reaching $18.89 in trading on April 28.
The Lucid Group (LCID) concentrates on the premium electric car segment, dazzling potential customers with vehicles that include electric motors with a combined capacity of over 1000 horsepower. Formula One engines have that kind of power, and Lucid household automobiles may show similar features because of electric motors’ improved efficiency.
This week, the LCID announced that it had signed an agreement with the Saudi government to sell at least 50,000 of its electric vehicles over the next ten years.
An extra 50,000 automobiles might be supplied in the same time frame as the first offer. According to plans, the first electric vehicles would be delivered no later than the second quarter of 2023.
Because Lucid Group has a long history of working with the Saudi Arabian government, obtaining such a large deal came as no surprise. In 2018, the Saudi Arabian sovereign wealth fund invested over $1 billion in Lucid Group, supporting the construction of the Lucid Group facility in Arizona.
In Saudi Arabia, the electric car maker has announced the development of its second manufacturing facility. It will be used to put together cars from kits built at the Arizona facility first. Lucid Group, on the other hand, plans to produce 150,000 cars per year in its Saudi Arabian plant.
It’s worth mentioning that Lucid Group’s stock is now selling at a discount to its 52-week high of more than 70%. As production increases, investors are anxious about the automaker’s ability to overcome supply chain concerns.
The recently announced order, on the other hand, boosts Lucid Group’s long-term prospects and might signal a turning point in the company’s history.