Shares of electric vehicle maker Lucid Group (NASDAQ:LCID) are trending higher today after it opened its first international car manufacturing facility in Saudi Arabia.
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The EV manufacturing plant, a first for Saudi Arabia, is expected to supply vehicles for Saudi Arabia as well as other markets. Saudi Arabia, a major oil-producing nation, is aiming to have 30% of its new car sales electric by 2030. Lucid’s new facility received support from the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the Economic City at King Abdullah Economic City.
The facility is expected to have an annual production capacity of 5,000 vehicles and will initially reassemble Lucid Air Vehicle kits produced in the U.S. The company plans to transition the facility to complete build-unit production after 2025 and expand the annual capacity to 155,000 vehicles.
Importantly, Saudi Arabia has agreed to purchase up to 100,000 Lucid vehicles over a ten-year period. This includes an initial commitment to purchase 50,000 vehicles and an option to acquire up to an additional 50,000 vehicles.
What Is a Good Price for LCID Stock?
Interestingly, Lucid recently expanded its Arizona facility and is looking to enter the Chinese market. Overall, the Street has a consensus price target of $7.50 for Lucid, alongside a Hold consensus rating. Shares of the company have declined by nearly 62% over the past year.
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