Lucid stock climbs after EV maker announces sales deal with Saudi Arabia

Lucid Group Inc.
LCID,
-8.74%
stock rose more than 4% in the extended session Tuesday after the EV maker said it had reached an agreement with Saudi Arabia to sell up to 100,000 vehicles over a 10-year period to Saudi Arabia’s government, including an initial commitment to buy 50,000 vehicles. That is “another pivotal moment in our acceleration of sustainable transportation worldwide,” Chief Executive Peter Rawlinson said in a statement. Lucid said that Saudi Arabia is committing to buy the luxury Lucid Air and other future models built and assembled at Lucid’s existing Arizona plant and the EV maker’s future plant in Saudi Arabia. Lucid is expected to sell between 1,000 EVs to 2,000 EVs annually, increasing to between 4,000 EVs and 7,000 EVs by 2025. “This will support the government’s drive to diversify the economy, provide thousands of highly skilled job opportunities and provide economic benefit” to the kingdom, the company said. A Saudi Arabian investment fund owns more than half of Lucid.