What a delicious irony it is confirmed…
According to the U.S. Energy Information Administration, the U.S. is the biggest oil producer in the world. Saudi Arabia is the second one, but petrodollars highly fund its economy. This is why there is such a delicious irony to the fact that Lucid would be discussing to have a plant in Saudi Arabia: one of the biggest oil producers wants to diversify its businesses by producing and selling electric cars. Sign of the times…
Bloomberg informed that the deal is being negotiated among Lucid and Saudi Arabia’s sovereign wealth fund, called Public Investment Fund (PIF). It is already a relevant Lucid shareholder, and the plan would be to establish this new factory in Jeddah, a city with an important port to the Red Sea.
That would make the new factory a fantastic export platform for Lucid’s products. Apart from the Air, the SUV Gravity could also be produced in the new plant for Europe and Asia, for example. Another candidate to have the plant is Neom, a new city Saudi Arabia is building – also close to the Red Sea.
Bloomberg’s sources said the discussions are advanced but that the plans could change. Regardless of where such a factory would be, it is clear that Lucid could use another plant to reach more markets apart from the American one. Tesla’s example with Giga Shanghai shows that having more than one manufacturing facility is desirable if you can afford that.
PIF made its investments in Lucid in 2018 with the condition that the company would develop “a site in Saudi Arabia.” Ironically, the sovereign wealth fund also had investments in Tesla, but it sold all its shares in the company in 2020.
Source: Bloomberg via Automotive News
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