On Thursday, the US luxury electric vehicle (EV) maker Lucid Group is planning to enter the largest auto market, China.
Its stock price dropped by -1.88% to $6.28 per share on June 08. Analysts have high hopes for the company as the following earnings report data is coming. Recently, their consensus shows a quarterly revenue of $222.13 million, 128.20% from last year.
Moreover, Lucid will sell imported cars in the Asian country as they also consider local production. According to its head of operations in China, Zhu Jiang, they are getting ready to enter the Chinese market.
Based on the fancy EV maker’s statement, they planned to raise $3.00 billion through a stock offering. Almost two-thirds of it would be from Saudi Arabia’s Public Investment Fund.
According to Zhu, the funding would contribute to bringing advanced EV technology and product experience. It would help the industry and global users at a quicker pace. He added that China is also looking forward to it.
However, Lucid is facing losses and shrinking cash reserves. This was brought about by recession fears and a price war with its market leader, Tesla. Last month, it cut its 2023 production forecast and announced weaker-than-expected Q1 revenue.
In addition, it significantly avoided lowering prices for its Air luxury sedan, which has an $87,400.00 starting price.
Air Sedan from Lucid Delivers to Saudi Arabia
The Vice President of Lucid Middle East, Faisal Sultan, said the EV maker will deliver Air sedans to Saudi Arabia.
He noted that he looks forward to an influx of electric vehicles on the country’s roads due to the demand from Saudi. Also, it was stated that the deliveries of hundreds of Air sedans to customers would begin in the following months.
Furthermore, the upcoming Saudi factory of Lucid will be located in King Abdullah Economic City (KAEC). According to Sultan, operations are expected to begin in the third or fourth quarter of 2023. The EV maker would export hundreds of cars weekly from Arizona to Saudi Arabia to meet demands.
