Lucid Motors Establishes Saudi Plant, Aiming for 150,000 Vehicles by 2029
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Saudi Plant Production Plan: Lucid opened its manufacturing facility in Saudi Arabia in September 2023, with plans to achieve full-scale production by 2026 and an annual capacity of 150,000 vehicles by 2029, seizing growth opportunities in the electric vehicle market.
- Deepening Ties with PIF: The Saudi Public Investment Fund (PIF) currently holds nearly 60% of Lucid's shares and has invested $8 billion since 2018, strengthening the strategic connection that will be crucial for Lucid's future capital needs.
- Market Environment Analysis: Saudi Arabia's Vision 2030 economic plan aims to reduce oil dependency and boost non-oil GDP, and Lucid's investment positions it to benefit from tax exemptions and 0% customs duties in this emerging market.
- Comparison with Tesla: Unlike Lucid, Tesla's strategy of importing vehicles to India has resulted in facing import duties of up to 110%, leading to a starting price of nearly $70,000 for the Model Y, highlighting the impact of differing market strategies.
Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LCID is 16.73 USD with a low forecast of 10.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
8 Hold
3 Sell
Hold
Current: 11.470
Low
10.00
Averages
16.73
High
30.00
Current: 11.470
Low
10.00
Averages
16.73
High
30.00
About LCID
Lucid Group, Inc. is a technology company, which designs, engineers, and manufactures electric vehicles (EVs), EV powertrains, and battery systems in-house using its own equipment and factories. It sells vehicles directly to consumers through its retail sales network and through direct online sales. Its vehicles include Lucid Air and Lucid Gravity. Lucid Air is an advanced car, featuring powertrain technology. It offers 420 miles of the United States Environmental Protection Agency (EPA)-estimated range, with an 84-kWh battery pack. The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers). The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV. It provides space for up to seven adults. It has engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
