Current geopolitical tensions and disruptions in global oil markets are driving a sharp rise in electric vehicle sales across much of the world.
Brent crude’s rise above $120 a barrel has prompted consumers to rethink their purchasing habits, turning to electric vehicles as a more stable and efficient alternative to fuel price volatility.
In March, during the first four weeks since the start of the war on Iran, major European markets, France, Germany, and the United Kingdom, saw purchases of about 206,200 electric vehicles, up 44% year on year. Sales doubled in South Korea, while Italy recorded 67% growth, according to Bloomberg data.
President of Lucid Motors in the Middle East Faisal Sultan told Asharq Al-Awsat that Saudi Arabia’s electric vehicle market, “although still in its early stages, is witnessing strong and accelerating momentum.”
He said Lucid continues to expand its presence in the Kingdom, alongside gradual growth plans in other Gulf Cooperation Council countries, as the market takes shape quickly, driven by government support, expanding charging infrastructure and growing consumer awareness of the importance of shifting toward sustainable transport.
Sultan said EV adoption continues to rise globally and regionally, including in Saudi Arabia, where the sector’s operating foundations are being strengthened. Structural drivers supporting the shift include Vision 2030 and the Saudi Green Initiative.
This path is backed by a clear national commitment to building an integrated mobility ecosystem, including major investments in local manufacturing and the expansion of charging infrastructure, providing a solid base for long-term demand, he remarked.
The shift toward electric vehicles is not only tied to demand dynamics, but also to changing consumer awareness of “the long-term value of owning these vehicles, including total cost of ownership and the ease of home charging,” he added.
Lucid has installed more than 100 AC chargers across the Kingdom, available free of charge, and continues to expand fast-charging services, he revealed.
Strategic investments
Against this backdrop, Lucid raised its total liquidity to about $4.7 billion, giving it financial runway into the second half of 2027, according to financial results announced on Monday.
The company said the capital raise included $550 million in convertible preferred stock from Ayar Third Investment Company, a Saudi Public Investment Fund affiliate, and a $200 million equity investment from Uber, increasing Uber’s total investment in Lucid to $500 million.
The sovereign-backed support comes as Lucid reported quarterly revenue of $282.5 million, below analysts’ estimates, due to an unexpected supplier-related technical issue involving seats in the Gravity model.
The issue temporarily disrupted deliveries before momentum resumed in March, while net losses stood at about $1.13 billion.
Production growth in Saudi Arabia
Operationally in Saudi Arabia, Lucid’s first-quarter 2025 results showed production of 2,212 vehicles across its plants in the Kingdom, in addition to more than 600 vehicles in transit. The company delivered 3,109 vehicles during the same period, up 58.1% from the corresponding period in 2024.
Revenue reached $235 million, while GAAP net loss stood at about $0.20 per share, compared with an adjusted loss of $0.24 per share. The company ended the first quarter with total liquidity of $5.76 billion.
Operational challenges
On deliveries, Lucid recorded about 3,093 vehicle deliveries as of March 31, compared with production of nearly 5,500 units, reflecting a temporary operational gap between production and deliveries.
Lucid said Gravity deliveries were disrupted for 29 days because of a supplier quality issue with second-row seats, which has since been addressed.
Sultan attributed the gap to a temporary disruption in one of the supply lines for the Lucid Gravity, caused by the second-row seat quality issue, and stressed that the problem had been fully contained and that operations had resumed normally.
He told Asharq Al-Awsat that supply chains remain dynamic, and that dealing with such challenges has become an essential part of developing the automotive business.
He added that Lucid’s strategy is based on strengthening resilience and adaptability by diversifying global supply sources, reducing costs and relying on a flexible, vertically integrated platform capable of responding to supply chain fluctuations.
He said the company faced three consecutive industry-wide crises last year involving magnetic materials, aluminum and semiconductors, and handled them quickly thanks to the flexibility of its engineering teams and manufacturing capabilities.
Sultan stressed that these challenges were operational and supply-chain related, and did not reflect weaker demand. Rather, they came within a framework of proactive management aimed at strengthening operational stability and ensuring continuity in production and deliveries.
