Saudi Arabia’s electric vehicle story is quietly shifting gears. What began as a modest assembly operation is now evolving into something far more substantial, as Lucid prepares to manufacture cars fully inside the Kingdom by the end of 2026.
Near Jeddah, along the Red Sea coast, Lucid’s facility is changing shape—both physically and symbolically. The site is moving beyond partial assembly and becoming a real factory, with equipment being installed and production lines designed to build cars from the ground up. It’s not a loud announcement or a dramatic launch, but it’s a meaningful step that signals how serious Saudi Arabia has become about building an automotive industry of its own.
Speaking at the Future Minerals Forum in Riyadh, interim CEO Marc Winterhoff made it clear that the plan is progressing as intended. Full manufacturing is expected to begin at the end of 2026, followed by a steady production ramp-up through 2027 and 2028. By 2029, the factory is expected to reach an annual capacity of around 150,000 vehicles.
What makes Lucid’s move especially notable is that it isn’t starting from scratch. The company already holds a unique position as the only automaker currently selling vehicles that have been assembled locally in Saudi Arabia. That history turns this transition into a natural next chapter, rather than a risky leap into the unknown.
The timing also fits neatly into a much larger Saudi vision—one that sees electric vehicles not just as cleaner transportation, but as a serious industrial opportunity. The goal goes beyond serving local buyers. Lucid plans to export most of its Saudi-built cars, reinforcing the Kingdom’s ambition to become a manufacturing and export hub, not just a consumer market.
Behind the scenes, long-term backing from the Public Investment Fund has played a decisive role in anchoring Lucid’s presence in Saudi Arabia. Looking ahead, the company is also working to broaden its funding base as its operations grow and its ambitions expand.
That journey hasn’t been without challenges. Like much of the global EV industry, Lucid has faced pressure from slowing demand in some markets and ongoing profitability concerns. Still, recent production numbers tell a story of momentum, suggesting the company is gradually finding its footing.
In the end, this isn’t just about a new factory or a production target. Lucid’s expansion represents a real-world test of Saudi Arabia’s ability to turn vision into industry—and to move from buying cars to building them. As 2026 approaches, that test is no longer theoretical. It’s taking shape on the ground.
