When Tesla CEO Elon Musk made the US$43-billion offer to take over Twitter (NYSE: TWTR), one of the firm’s major shareholders, Saudi Arabian Prince Alwaleed bin Talal, rejected the deal. While he apparently lost that talk, another carmaker is getting a win by securing an undertaking with the Kingdom of Saudi Arabia for a 10-year contract.
Lucid Group (Nasdaq: LCID) announced on Tuesday the letter of undertaking entered with the Kingdom of Saudi Arabia to purchase up to 100,000 electric vehicles.
While no specific details have been shared yet, the undertaking involves an initial commitment of a 50,000-vehicle purchase and an option to purchase 50,000 more during the 10-year period.
The purchase price will be dependent on either the applicable retail price in Saudi Arabia or in the United States plus logistics cost, whichever is lower. The Kingdom plans to start the purchase no later than Q2 2023, starting with 1,000 and 2,000 vehicles annually and then expected to scale up.
In March 2022, the Middle Eastern nation announced the plan to set up its first electric vehicle manufacturing plant in the country, in partnership with Lucid Group. The facility, expected to hold a 150,000-vehicle annual capacity, is a stride of the government’s goal to achieve 30% electric vehicle penetration in the capital city Riyadh by 2030.
Lucid Group last traded at US$17.64 on the Nasdaq, down 8.7% on the day. However, shares rallied by as much as 6.0% pre-market.
Information for this briefing was found via Arab News the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
