Lucid Expands Global Footprint With Saudi Manufacturing Push

An electric vehicle (EV) startup, Lucid Group, Inc. LCID, is preparing to begin a full-scale vehicle manufacturing unit in Saudi Arabia this year, marking a significant step in the company’s global expansion strategy. The new facility is located in King Abdullah Economic City (“KAEC”) on the Red Sea.

While Lucid has not disclosed an exact start date for production, it gradually plans to ramp up production over the next few years. It aims to reach an annual production capacity of 150,000 vehicles by 2029 and has already started moving heavy machinery and equipment into the new facility and making final preparations ahead of full production.

This development is significant not only for Lucid but also for Saudi Arabia’s broader goal to build a domestic automotive manufacturing industry. Lucid opened its first Saudi facility (in 2023), which has so far been used to assemble vehicles that were partly manufactured in the United States.

Saudi Arabia’s Public Investment Fund (“PIF”) remains Lucid’s largest shareholder, holding more than 50% of the company. Since 2018, PIF has invested more than $8 billion in Lucid, providing long-term financial backing and reinforcing confidence in the company’s global manufacturing and expansion plans.

The new shift to full vehicle production means that car bodies, battery packs, and final assembly will take place locally. This transition transforms the KAEC facility from an assembly plant into a complete manufacturing facility.

At present, Lucid is the only company selling vehicles manufactured in Saudi Arabia, but competition is expected to increase. Major automakers like Hyundai are planning their own factories in the country, while a local EV manufacturer, Ceer, is working on its first electric vehicle. These companies are attracted by 0% taxes and other incentives that the Saudi government is offering in its special economic zones, per ArenaEV.

Lucid has also increased its overall vehicle production in recent years, helping the company meet its annual targets. The company produced over 8,400 vehicles in the last quarter of 2025, bringing its total annual production to 18,378 vehicles, which was double the production last year.This progress supports Lucid’s decision to expand manufacturing capacity abroad and reinforces its global growth ambitions.

The decision to manufacture vehicles in Saudi Arabia goes beyond business, as it supports the country’s efforts to reduce its dependence on oil and become a clean energy and technology hub. By producing complete electric vehicles locally, Lucid and Saudi Arabia aim to create jobs, transfer technology, and expand exports within the rapidly growing global EV industry.

Overall, Lucid’s Saudi expansion represents a long-term strategic bet on global scale, cost efficiency, and access to a fast-growing EV market, supported by strong government backing. As production ramps up, the KAEC facility is expected to play a central role in Lucid’s future growth.

Lucid Group, Inc. Price, Consensus and EPS Surprise

Lucid Group, Inc. price-consensus-eps-surprise-chart | Lucid Group, Inc. Quote

Zacks Rank & Key Picks

LCID currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Ford Motor F, General Motors GM and REV Group REVG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2025 and 2026 EPS has improved 2 cents and 5 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 2 cents and 24 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings indicates year-over-year growth of 8.1% and 37.8%, respectively. The Zacks Consensus Estimate for REVGS’s fiscal 2026 and 2027 EPS has improved 20 cents and 26 cents, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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