Lucid (LCID) is on track to begin building EVs at full-scale at its second facility in 2026

After overcoming major production hurdles last year, Lucid Group (LCID) is on track to begin building vehicles at a new plant in Saudi Arabia in 2026.

Lucid set to begin production at new Saudi facility in 2026

Lucid opened the first car manufacturing plant in Saudi Arabia in September 2023, but so far, it has only partially assembled vehicles at the facility.

That will change this year. At the Future Minerals Forum in Riyadh, Saudi Arabia’s capital, Lucid’s interim CEO Marc Winterhoff confirmed (via Bloomberg) the company is “on track” to begin full-scale production at a new facility in 2026.

According to Winterhoff, Lucid has already begun moving equipment to the new location in King Abdullah Economic City (KAEC) in Jeddah, right off the Red Sea.

Although he didn’t give a specific date, Winterhoff said the company will ramp up production over the next few years, aiming to reach an annual capacity of 150,000 vehicles in 2029.

Lucid was the first, and still the only automaker to sell vehicles assembled in Saudi Arabia, but other brands, like Hyundai, are quickly moving in. Earlier this week, we also got a sneak peek of Ceer’s first vehicle (which looks like a shrunken Tesla Cybertruck), Saudi Arabia’s first homegrown EV brand.

Saudi’s Public Investment Fund (PIF) is Lucid’s largest shareholder, holding over 50% stake in the company. Since 2018, PIF has invested over $8 billion in Lucid to help it get up and running.

At the event in Riyadh, Winterhoff said that although he doesn’t expect further PIF investments, Lucid is still looking for additional sources of funding.

Lucid produced over 8,400 vehicles in the fourth quarter, bringing the total to 18,378 in 2025. The higher output was enough to meet its full-year production guidance of 18,000 after Lucid lowered it mid-year. Still, the over 18,000 vehicles produced were more than double the roughly 9,000 made in 2024 as Lucid ramps up output.

Lucid, Hyundai, Tesla, BYD, and several others see an opportunity with Saudi Arabia heavily investing in new technology, electric vehicles, and other clean energy initiatives.

As part of its Vision 2030 economic plan, Saudi Arabia plans to reduce its reliance on oil by boosting non-oil GDP.

It’s also establishing an auto export hub on the Red Sea by attracting brands like Lucid with tax exemptions and a 0% customs duties for imports in Special Economic Zones (SEZs), such as King Abdullah Economic City (KAEC), where the company will begin building vehicles later this year.

We should learn more about Lucid’s financial situation when it reports Q4 and full-year earnings on Tuesday, February 24.