Lucid Group officially begins deliveries of its aerial vehicles in Saudi Arabia

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Just days after Lucid Group (NASDAQ: LCID) began delivering its popular Air electric cars in the European Union, fledgling Tesla rival is now solidifying its footprint in the Middle East, with its first batch of electric vehicle deliveries in Saudi Arabia in Past. few hours.

According to a tweet from the Twitter account @tweetOne of the first Air EV deliveries took place in 01street January 2023 in Riyadh, the capital of Saudi Arabia. Of course, this development comes just days after deliveries of the Lucid Air Dream Edition electric vehicle began in Germany and the Netherlands.

The Lucid Group’s unique 900-volt electrical engineering allows it to charge its electric vehicles efficiently. For example, when paired with a 300kW DC fast charger, the Lucid Air Grand Touring Edition can add a whopping 400km of range in just 15 minutes.

Towards the end of December 2022, the Lucid Group was able to decisively address concerns about a possible liquidity crunch the company was widely expected to face in 2023. First, the company completed its market offering announced in November, raising about 600 million dollars in the process by selling 56.2 million shares. Secondly, the Lucid Group announced that it is raising about $915 million by selling some of its shares to Aiyar Investment Company III, a subsidiary of the Saudi Public Investment Fund, through a private placement of shares. In total, the company has now secured $1.515 billion in new liquidity to bolster its cash position, which stood at $3.85 billion at the end of the third quarter of 2022 and consisted of cash, cash equivalents and investments.

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With a total addressable market (TAM) of approx 15 percent In the US, some analysts remained skeptical of the Lucid Group’s financial sustainability outlook. After all, the company is currently burning through about $1 billion in cash every quarter. Without the exercise of the recent capital increase, the Company’s cash position would have fallen to an estimated $2.85 billion by the end of December 2022. However, given the infusion of fresh liquidity, the Company likely ended Q4 2022 with a cash position. $4.365 billion – more than enough to cover the entire 2023 fiscal year.

Looking ahead, 2023 will see reservations open for the Lucid Gravity SUV, and deliveries are expected to begin in 2024. As a refresher, the Lucid Group AMP-1 facility in Casa Grande, Arizona, has a production capacity of 34,000 units annually. . The company is adding a second assembly line at the facility to handle production of the Lucid Gravity SUV. Once the upgrade is complete, the facility’s annual production capacity will increase to 90,000 vehicles annually. Separately, Saudi Arabia recently awarded the Lucid Group incentives worth about $3 billion to set up a 155,000-unit-per-year production facility in the kingdom. The Saudis also signed an agreement to purchase up to 100,000 electric cars from the company over the next ten years.

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