By Sam Boughedda
Investing.com -- Lucid Group Inc (NASDAQ:LCID) stock climbed 3.6% Wednesday after it announced after the close Tuesday that the Government of Saudi Arabia will purchase up to 100,000 vehicles over 10 years.
The deal has an initial purchase commitment of 50,000 vehicles with an option for the Saudi Government to purchase up to a further 50,000 vehicles over the same period.
"Delivering up to 100,000 Lucid electric vehicles in Saudi Arabia represents another pivotal moment in our acceleration of sustainable transportation worldwide," said Peter Rawlinson, Lucid's CEO and CTO.
The Saudi Government will buy the vehicles, such as the Lucid Air and other future models, built at Lucid's existing Arizona factory and its future manufacturing facility in Saudi Arabia.
Lucid will reportedly begin building its Saudi manufacturing facility before the end of 2022. They aim to complete the factory by 2025 or 2026.
The order quantity is expected to be between 1,000 to 2,000 vehicles per year and increase to between 4,000 and 7,000 vehicles per year starting in 2025, with deliveries beginning no later than the second quarter of 2023.
While no financial details were provided, Lucid explained that the purchase price will be determined "based on the lower of the standard retail price for the applicable vehicle in Saudi Arabia and the standard retail price for the applicable vehicle in the United States, plus the logistics and importation costs and other costs of delivering and homologating vehicles to regulations of Saudi Arabia."