Lucid Opens Saudi Arabia's First Car Factory

Saudi Arabia just welcomed its first automobile factory to life, and it's building some of the world's most advanced electric vehicles.

Lucid Motors opened its second manufacturing plant in King Abdullah Economic City near Jeddah, marking a historic moment for a country long defined by oil production. The facility represents both Saudi Arabia's push toward economic diversification and Lucid's ambitious global expansion beyond its Arizona headquarters.

The plant started small in 2023, assembling about 5,000 vehicles per year from kits shipped from the United States. But that was just the beginning of a much bigger vision.

Now the real transformation is underway. Lucid is completely rebuilding the facility to handle every stage of vehicle production, from metal stamping to powertrain assembly. The upgrade will allow the factory to build complete vehicles from the ground up rather than simply assembling pre-made components.

The timing couldn't be more strategic. Lucid just built the first prototypes of its upcoming midsize electric crossover, a $50,000 vehicle designed to compete directly with the Tesla Model Y. This more affordable model will be the Saudi plant's centerpiece, potentially unlocking a 50,000-vehicle order from the Saudi government.

The company plans to showcase this new vehicle at its March 12 Investor Day, offering the first detailed look at the design that could finally bring Lucid's technology to everyday drivers. Unlike the company's current luxury sedan that starts around $70,000, this midsize platform targets the mainstream market where sales volume really happens.

The Ripple Effect

Building a car factory from scratch on undeveloped land gave Lucid a rare advantage. The company integrated cutting-edge digital twin technology and advanced manufacturing software from day one, avoiding the painful retrofitting that plagues older automotive plants.

This greenfield approach means the Saudi facility can serve as more than just a local assembly plant. By producing vehicles closer to Middle Eastern, European, and Asian markets, Lucid sidesteps import tariffs while reducing shipping costs and delivery times. The company envisions the plant becoming a critical export hub serving multiple continents.

The production ramp tells the story of careful ambition. Full-scale manufacturing launches later this year, with gradual increases through 2027 and 2028, building toward that 150,000-vehicle annual capacity by 2029. That's thirty times the plant's original assembly output.

For Saudi Arabia, the factory represents tangible progress in building an economy beyond petroleum. For Lucid, it's a manufacturing model that could be replicated as the company grows. And for electric vehicle adoption worldwide, it's another step toward making clean transportation accessible and affordable.

A car factory rising from desert sand proves that big transformations often start with bold first steps.