Lucid Says Saudi PIF Was Supportive as Provide Crunch Hit

(Bloomberg) —

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

Saudi Arabia’s Public Funding Fund, which owns simply over 60% of the luxurious electric-vehicle group, understands the challenges round provide chain points and prices, mentioned Faisal Sultan, managing director of world operations at Lucid. The corporate is just not seeing stress from traders. 

“The PIF have been very supportive,” he mentioned on Bloomberg TV. “When the world re-emerges from the pandemic and the provision chain catches up, we will probably be prepared.” The corporate is on course to ship vehicles to prospects in Riyadh within the second quarter of subsequent yr, he mentioned.

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 vehicles earlier this month — the second time the Newark, California-based startup has decreased its output aim this yr, from an unique goal of 20,000 vehicles.

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

Lucid, which already has a deal to promote as many as 100,000 electrical automobiles to Saudi Arabia over the following decade, continues to see an enormous alternative within the area, Sultan mentioned. “The federal government may be very critical and so they’ve been working very onerous with us to verify the setting is prepared,” he mentioned. 

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

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