Lucid Motors exceeded all analyst expectations in the third quarter of this year, with the electric vehicle manufacturer announcing the sale of approximately 2,800 vehicles, compared to the forecast of around 2,170 vehicles. This comes despite a slowdown in quarterly production, which recorded 1,805 vehicles compared to around 2,400 vehicles produced in the second quarter.
It is worth noting that Lucid had announced in August its expectations of producing 9,000 vehicles this year. The Saudi Public Investment Fund (PIF) currently owns more than 60% of Lucid and has been a key source of funding for the company’s operations. The specialized electric car company aims to establish itself as a major player in the electric vehicle market and leverage economies of scale to turn profitable, although it continues to post losses.
On March 25th, Lucid signed a deal under which it would receive $1 billion from a subsidiary of the Saudi PIF. Ayar Third Investment Company, one of the sovereign wealth fund’s subsidiaries, purchased convertible preferred shares worth $1 billion.
Lucid Motors, an American company specializing in the production of luxury electric vehicles, aims to be a major player in this growing sector. Despite being relatively new compared to competitors like Tesla, Lucid has garnered attention thanks to its advanced designs and pioneering technologies.
Vision and Foundation
Lucid began its journey in 2007 under the name "Atieva," initially focusing on developing battery technology and electrical components for vehicles. However, in 2016, the company's vision shifted when it announced its transition to electric car manufacturing under the name Lucid, with the launch of its luxury sedan, Lucid Air. This vehicle stands out for its advanced technology and luxury features, such as long driving range and high performance.
Support from the Saudi Public Investment Fund (PIF)
One of the key factors contributing to Lucid’s recent success is the support from the Saudi Public Investment Fund (PIF), which holds more than 60% of the company. This significant investment reflects the Saudi government’s confidence in the future of electric vehicles and its desire to diversify its economy away from oil. Billions of dollars have been injected into the company to support its expansion, including a $1 billion investment in 2023 through a convertible stock purchase deal.
Challenges and Ambitions
Despite early success and praise for its vehicles, Lucid faces significant challenges. Chief among them is its ability to scale up production to meet the growing demand for its cars. In the third quarter of 2024, the company exceeded sales expectations by selling around 2,800 vehicles, despite producing fewer than anticipated, with 1,805 cars manufactured compared to 2,400 in the previous quarter.
Future Plans
Lucid aims to produce 9,000 vehicles by the end of this year, a step toward achieving the economies of scale needed to move towards profitability. The company is well aware that success in the electric vehicle market requires a combination of large-scale production and technological innovation. For this reason, Lucid is focusing on improving production efficiency and expanding its global sales network by opening more markets in Europe and Asia.
Despite the challenges, Lucid Motors remains a company with immense potential to succeed in the electric vehicle market. The backing from the Saudi Public Investment Fund gives it the financial ability to achieve its long-term goals. If Lucid can balance innovation with production expansion, it could become a major player in this rapidly growing sector.