Sam Boughedda

Investing.com — Lucid Group Inc (NASDAQ:) stock climbed 3.6% Wednesday after it announced after the close Tuesday that the Government of Saudi Arabia will purchase up to 100,000 vehicles over 10 years.

There is an initial commitment to buy 50,000 vehicles, with the possibility for the Saudi Government purchasing up to 50,000 more vehicles during the same time period.

Lucid CEO Peter Rawlinson said, “Delivering as many as 100,000 Lucid electric cars in Saudi Arabia is another pivotal moment for our acceleration of sustainable transport worldwide.”

Saudi Arabia will purchase the cars, including the Lucid Air, and future models made at Lucid’s Arizona plant and future Saudi Arabian manufacturing facilities.

Lucid is expected to begin construction of its Saudi facility for manufacturing before 2022 ends. They plan to finish the factory in 2025-2026.

Expected order quantities will range from 1,000 to 2,000 vehicles annually and rise to between 4,000 and 7,001 vehicles each year beginning in 2025. Deliveries should begin no later than 2023.

Lucid stated that while no financial information was provided, Lucid said the purchase price would be determined “based upon the lower of two prices: the Saudi Arabian standard retail price and the American standard retail price. This will also include logistics and importation fees for delivering the vehicle to Saudi Arabia’s regulations.