- Tesla rival Lucid Motors is assisting Saudi Arabia to go electric powered in its carmaking drive, per the FT.
- The oil-wealthy kingdom programs to invest billions into starting to be a hub for EV suppliers this sort of as Lucid.
- The go is element of Saudi Arabia’s approach to develop into considerably less reliant on oil earnings, its principal profits supply.
Saudi Arabia is tapping Tesla rival Lucid Motors to help it become a hub for generating electric powered vehicles, section of the power-abundant kingdom’s formidable plan to be considerably less reliant on its oil profits.
U.S.-dependent Lucid has signed up to develop 150,000 autos a 12 months in Saudi Arabia by 2025, the Financial Times claimed at the weekend. That helps make up a big chunk of the output it needs the hub to access within the following seven several years.
The kingdom is pouring dollars into the exertion, overseen by its $600 billion Public Financial commitment Fund. The sovereign wealth fund has presently put in about $2 billion selecting up a majority stake in Lucid, for every the FT.
Saudi Arabia’s mission to turn into an EV producing powerhouse is component of its ambitious plan to grow to be much less reliant on oil cash flow, its key source of revenue.
It has reaped hefty revenue from its oil sales around the previous 12 months on the back again of Russia’s war with Ukraine, which sent crude rates soaring in 2022. Its condition-owned oil organization Saudi Aramco posted a 39% soar in financial gain in November, thanks to that rate surge.
Tapping into the EV industry is also a way to produce new positions and competencies in the economic climate, as Saudi Arabia seeks to capitalise on the envisioned advancement in the sector many thanks in part to climate modify initiatives.
Lucid’s factories will be dependent in the King Abdullah Economic City, which will act as the heart of the supply chain — the main concentrate of the EV startup’s initiatives.
Lucid’s stock has been crushing it currently, mostly in element because of to rumors of whole takeover by Saudi Arabia’s PIF, which previously owns over 60% of the automaker. That assisted it defeat rival carmaker Tesla to turn into the finest-undertaking stock on the Nasdaq Composite very last 7 days.