In the ever-evolving landscape of electric vehicles, a recent development has sparked curiosity and raised intriguing questions. Lucid, the Saudi-backed EV manufacturer, found itself in a peculiar situation when its Middle East arm celebrated a milestone of 5,000 vehicles sold in Saudi Arabia, only to swiftly delete the post, leaving many to wonder about the true state of its progress.
The Saudi Connection
Saudi Arabia's Public Investment Fund (PIF) made headlines in 2022 with an agreement to purchase a significant number of Lucid vehicles, ranging from 50,000 to a whopping 100,000 over a decade. This deal, with its ambitious targets, positioned Saudi Arabia as Lucid's largest customer and a key player in the EV market.
However, the deleted post celebrating 5,000 vehicle sales in four years has revived doubts about Lucid's ability to meet these targets. From my perspective, this raises a deeper question about the reliability of such commitments and the challenges faced by EV manufacturers in a rapidly changing industry.
Financial Insights
Lucid's revenue breakdown provides an interesting lens to analyze its Saudi business. While Saudi Arabia generated a substantial $161.8 million in 2025, it's worth noting that this figure represents a decline from the previous year. The quarterly revenue pattern also hints at potential fluctuations in vehicle deliveries, with the second quarter of 2025 suggesting fewer than 100 cars delivered despite a high revenue figure.
What many people don't realize is that Lucid's revenue by geography offers a unique insight into its sales strategy and the potential risks associated with relying heavily on a single market.
The Ownership Factor
A detail that I find especially interesting is the ownership structure of Lucid. The Public Investment Fund, which is also Lucid's largest customer, owns a significant 56.9% stake in the company. This creates an intriguing dynamic where Lucid is, in effect, selling cars to its majority owner.
This raises questions about the independence of Lucid's operations and the potential influence of its largest shareholder. From an analytical standpoint, it's crucial to consider how this ownership structure might impact Lucid's long-term strategy and its ability to navigate the competitive EV market.
The Bigger Picture
While the delivery milestone is an important indicator, it's the bigger bet on the factory that truly matters for Lucid's future in Saudi Arabia. The company's plant in King Abdullah Economic City, its only factory outside the US, is being transformed into a full production facility, with plans to assemble its midsize Cosmos crossover starting late in 2026.
Saudi Arabia's role as an export hub for the Gulf, Europe, and Asia is a far more significant prize than domestic sales alone. This strategic move positions Lucid to tap into a much larger market, and it will be fascinating to see how this plays out in the coming years.
Conclusion
The deleted post by Lucid's Middle East arm serves as a reminder of the complexities and challenges faced by EV manufacturers. While the initial celebration of 5,000 vehicle sales might have been premature, it highlights the importance of long-term vision and strategic planning in a rapidly evolving industry. As Lucid gears up to report its second-quarter results, the focus will undoubtedly be on its progress towards becoming a global export hub from its Saudi factory.
