Lucid Expands Saudi Plant Amid Big Gains And Challenges

Lucid Motors, the California-based electric vehicle (EV) manufacturer known for its luxury sedans and ambitious growth strategy, is making headlines once again. On January 21, 2026, Lucid and its key supplier, Rockwell Automation, announced an expansion of their partnership that will see Rockwell’s advanced manufacturing technologies implemented at Lucid’s Saudi Arabia plant in King Abdullah Economic City (KAEC). This move, aimed at boosting production efficiency and supporting Saudi Arabia’s Vision 2030 goals, comes as Lucid faces both remarkable milestones and significant industry headwinds.

According to a joint statement reported by multiple outlets, Lucid’s Saudi facility is undergoing a major upgrade. After beginning with semi-knocked down (SKD) kits, the plant is now being prepared for full vehicle production, with operations slated to ramp up by late 2026—about three years after the first vehicle rolled off the Saudi line. The integration of Rockwell Automation’s FactoryTalk manufacturing execution system (MES) software will allow Lucid to manage and optimize every aspect of production, from general assembly and paint to stamping, body, and powertrain. This digital foundation is expected to deliver real-time visibility, traceability, and control, supporting the production of Lucid’s next-generation vehicles.

Ahmad Haydar, head of Rockwell’s operations in Saudi Arabia, emphasized the strategic significance of this collaboration: “Lucid’s adoption of FactoryTalk MES is a strategic move that will deliver measurable outcomes in operational efficiency, quality, and scalability.” Rockwell’s local team will also provide instructor-led and virtual training, aiming to develop a skilled workforce and drive sustainable industrial growth in line with the Kingdom’s ambitious Vision 2030. That vision includes a target for 30% of all vehicles in Riyadh to be fully electric by 2030, and a national goal of net-zero carbon emissions by 2060.

Faisal Sultan, Lucid’s President of Middle East, echoed this sentiment, noting, “Rockwell Automation has been a trusted partner throughout our journey, from our Arizona factory to our expansion in Saudi Arabia.” The partnership’s roots stretch back to Lucid’s Arizona facility, which has seen its production footprint quadruple since the launch of the Air Sedan—from 800,000 to nearly 4 million square feet. At a Rockwell investor event last November, Lucid’s VP of Manufacturing, Gaetano Cantalupo, explained the importance of a robust digital foundation: “Consistency is absolutely critical. We are on a very fast pace. We are building—I’d like to say—the most advanced vehicle. To do this, you really need to push the boundary of innovation to the limit. And not only, we are doing it at a very high speed.”

Lucid’s expansion in Saudi Arabia is more than just a geographic play. The company plans to produce its mid-size platform at the KAEC plant, allowing it to sidestep tariffs on imported parts from China and target exports of over 90% of the plant’s output. The production ramp-up is set to be gradual, with output scaling through 2027 and 2028 before reaching a maximum capacity of 150,000 vehicles in 2029. As of last month, Lucid’s CFO, Taoufiq Boussaid, reaffirmed the timeline, and interim CEO Marc Winterhoff added, “We’ve already started moving equipment and we’re on schedule.”

The news of Rockwell’s involvement sent Lucid’s stock soaring 13.8% on January 21, 2026, as reported by The Motley Fool. Shares climbed to $11.29, marking a 16% gain in Wednesday’s trading session. However, this pop comes with important caveats. Despite the surge, Lucid’s share price is still down 64% over the past year, reflecting the broader challenges facing the company and the EV market at large.

Lucid’s business model draws clear inspiration from Tesla’s early years. The company has focused on luxury sedans and SUVs—its Air sedan and Gravity SUV have garnered high praise from automotive reviewers and drivers alike. Lucid is betting on improved manufacturing economics and economies of scale to eventually reach profitability, much like Tesla did. But as The Motley Fool points out, Lucid faces a much tougher road. The EV market’s growth has slowed, competition from Chinese manufacturers is intensifying, and government subsidies that once buoyed the sector have largely expired.

The numbers paint a sobering picture. Across the first three quarters of 2025, Lucid posted a net loss of roughly $1.88 billion. While the launch of the Gravity SUV boosted vehicle production and deliveries, the company remains far from profitability and is likely to continue relying on new stock sales to fund operations—diluting existing shareholders in the process. As one analyst put it, “It’s very unlikely that the stock will go on to be the next Tesla.”

Still, Lucid has posted some impressive operational achievements. In 2025, it delivered nearly 16,000 vehicles, with a particularly strong fourth quarter: 5,345 vehicles delivered, up 31% from the previous quarter and 72% from the same period in 2024. Production figures also soared, with 8,412 vehicles produced in Q4 2025—a 116% jump from Q3 and a 148% increase over Q4 2024. For the full year, Lucid manufactured 18,378 vehicles, a 104% increase over 2024, slightly exceeding the board’s revised forecast but still below the original 20,000-unit target.

Looking ahead, Lucid plans to unveil a more affordable mid-size electric car in summer 2026, with production potentially starting at the end of that year and deliveries beginning in 2027. The new model is expected to start at around $48,000 to $50,000, positioning it as a competitor to Tesla’s Model Y. The company is also venturing into the autonomous vehicle space, partnering with Nuro and Uber to develop a robotaxi based on the Lucid Gravity. Uber invested $300 million in Lucid last year, and initial road tests are already underway. Uber aims to integrate at least 20,000 Lucid robotaxis into its platform over the next six years.

But not all the news is rosy for Lucid owners. As reported by FilmoGaz, one owner of a Lucid Air Grand Touring sedan learned a costly lesson about depreciation. Purchased in February 2025 for $124,950 (including options and delivery fees), the vehicle was sold a year later for $75,500 after just 6,500 miles—a staggering loss of $49,450, excluding taxes and registration. Similar 2022 models are now listed for around $50,000, underscoring the rapid and steep depreciation faced by luxury EVs.

The Lucid Air Grand Touring, with its dual electric motors producing 819 horsepower, a 0-60 mph time of about 3 seconds, and a 512-mile range, remains a technological marvel. Yet, the financial risks of luxury EV ownership are clear, and the market’s evolving dynamics mean buyers need to be more informed than ever.

As Lucid pushes forward with its global ambitions, the company is at a crossroads—balancing innovation and expansion with the harsh realities of market competition, profitability challenges, and consumer expectations. Investors and customers alike will be watching closely as Lucid navigates the next chapter of its electrifying journey.