Lucid Motors: The First Global EV Company “Made in Saudi”

Lucid Motors, an American EV manufacturer that supplies advanced electric vehicle powertrain systems, are best known for producing luxury electric vehicles that offer class-leading range; its flagship model, the Lucid Air, holds the title for the longest EPA-rated range of any EV—up to 516 miles on a single charge. Originally founded in 2007 as Atieva, Lucid rebranded under engineering leadership from ex-Tesla Model S chief Peter Rawlinson.

Once a Silicon Valley upstart, Lucid Motors has become a linchpin in Saudi Arabia’s electric mobility transition—transforming the Kingdom into the first non‑Chinese host of a global premium EV brand. Backed by Saudi Arabia’s Public Investment Fund (PIF), who have invested billions into the EV manufacturer, helping Lucid to launch their first model, Lucid Air, as well as to successfully IPO in 2021.

PIF’s investment in Lucid was strategic from the start, and in acquiring a 58% stake in the company, PIF was able to ensure that Lucid would launch its Advanced Manufacturing Plant 2 (AMP‑2) in King Abdullah Economic City (KAEC) near Jeddah, which officially opened in September 2023. This marked a significant step for the Kingdom, as Lucid Motors AMP-2 facility became Saudi Arabia’s first-ever car factory—and the world’s first global EV brand with full production in the Kingdom.

This long-term strategic investment aligns with Vision 2030 goals to localize manufacturing, diversify the economy beyond oil, and establish Saudi Arabia as a regional hub for sustainable mobility. PIF’s backing has also enabled Lucid to de-risk global expansion, access guaranteed government demand (50,000–100,000 EVs over 10 years), and attract R&D partnerships within the Kingdom. After more than a decade in California, Lucid is now officially “Made in Saudi”—turning global aspiration into local industrial reality.

Manufacturing Ambitions & Economic Impact

Lucid Motor’s AMP‑2 facility started life as a semi-knocked‑down (SKD) assembly plant with a modest annual capacity of around 5,000 vehicles, reassembling Air sedans shipped from Arizona. But that is just Phase 1.

Lucid aims to ramp up to a staggering 150,000 to 155,000 vehicles per year by 2027, enabling exports to Europe, Asia, and other regional markets. Estimates suggest the facility spans 1.3 million square meters, helping to anchor a local automotive ecosystem and create 4,500+ jobs across operations, engineering, and supply chain development.

Saudi’s PIF has deepened its financial commitment—and overall financial exposure—with total funding for Lucid now approaching $8–9 billion. A notable $1.5 billion capital injection in August 2024 (via convertible stock and debt) was earmarked specifically for scaling production of the upcoming Gravity SUV, targeted at broader markets and higher volumes.

Catalyzing Vision 2030

Lucid’s factory isn’t just about luxury EVs—it’s a pillar of Vision 2030’s industrialization blueprint. Within years, Lucid is expected to employ hundreds of Saudi nationals initially, with plans to scale into the thousands via partnerships with the Human Resources Development Fund (HRDF) and local universities. This milestone marks the first time a foreign EV brand is considered “made in Saudi,” underscoring its role in creating a new non‑oil economic pillar.

The Kingdom has also committed to purchasing between 50,000 and 100,000 Lucid vehicles over the next decade, embedding guaranteed demand into plant viability. This institutional support aligns Lucid production with national sustainable mobility targets—and promotes EV adoption in public and private sectors alike.

Innovation, Challenges, and Market Momentum

Lucid’s R&D ambitions extend beyond assembly. A strategic partnership with Saudi Arabia’s premier research university, KAUST, launched in April 2025 to push autonomous driving, battery resilience, and smart powertrain innovation—reflecting a desire to build a regional EV technology cluster, not just a factory.

Still, the company faces real headwinds: a widening net loss (over $3.1 billion in 2024), executive turnover with former CEO Peter Rawlinson stepping down into an advisory role, and a broader EV market slowdown in the U.S.—forcing Lucid to rely heavily on Saudi backing for scale-up. Yet the broader PIF-led ecosystem—buoyed by the gravity of Vision 2030—positions Lucid not just to survive, but to pioneer a structural shift in regional manufacturing and green mobility.

A Saudi Success Story

Lucid Motors offers a case study in strategic convergence: global EV technology meeting Saudi industrial ambition. By turning Silicon Valley design into Saudi assembly-line capability, the company exemplifies how international investment—aligned with Vision 2030—can unlock jobs, wage industrial transformation, and create a globally exportable, non-oil economic engine. Lucid isn’t just selling EVs—it’s building a legacy in Saudi Arabia’s electrified future.

 

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