Lucid says Saudi Arabia’s PIF ‘very supportive’ as provide crunch hits manufacturing

High shareholder Saudi Arabia has been supportive of Lucid Group Inc. throughout a provide crunch that compelled two manufacturing goal cuts this 12 months, an official on the carmaker stated on Thursday.

Saudi Arabia’s Public Funding Fund, which owns simply over 60 p.c of the luxurious electric-vehicle group, understands the challenges round provide chain points and prices, stated Faisal Sultan, managing director of worldwide operations at Lucid. The corporate shouldn’t be seeing strain from traders.

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“The PIF have been very supportive,” he stated on Bloomberg TV. “When the world re-emerges from the pandemic and the provision chain catches up, we will likely be prepared. The corporate is on track to ship automobiles to prospects in Riyadh within the second quarter of subsequent 12 months,” he stated.

Like different automakers, Lucid has been coping with provide chain snags and ensuing manufacturing hiccups. The agency halved its 2022 manufacturing goal to six,000 to 7,000 automobiles earlier this month — the second time the Newark, California-based startup has lowered its output purpose this 12 months, from an authentic goal of 20,000 automobiles.

The agency is seeing enchancment as nations it has provide bases in open up, Sultan stated. “We’re a brand new firm, so undoubtedly there will likely be challenges within the subsequent three-four months, however we’re hoping issues will get higher by the top of this 12 months.”

Lucid, which already has a deal to promote as many as 100,000 electrical autos to Saudi Arabia over the subsequent decade, continues to see a giant alternative within the area, Sultan stated. “The federal government may be very severe and so they’ve been working very arduous with us to ensure the atmosphere is prepared,” he stated.

The Air mannequin begins from about $80,000, a value level that can “entice lots of people,” Sultan stated. “They wish to contribute in the direction of sustainability and drive a luxurious car on the similar time.”

Learn extra: Saudi authorities orders as much as 100,000 electrical autos from PIF-owned Lucid

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