Lucid in Saudi Arabia: From Assembly to Manufacturing

Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
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Lucid in Saudi Arabia: From Assembly to Manufacturing

Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)
Lucid CEO and board member Silvio Napoli. (Asharq Al-Awsat)

Lucid Motors is entering a new phase focused on improving liquidity and operational discipline, while launching new products and expanding manufacturing in Saudi Arabia as it seeks to address financial pressures and strengthen its capacity for growth.

The shift comes as the company continues to expand its business. Second-quarter revenue rose 56 percent year on year to $405 million, while vehicle deliveries increased 19 percent to 3,953.

At the same time, Lucid deliberately reduced production to better align supply with demand, cut inventory and preserve cash. Total liquidity stood at about $3 billion at the end of the quarter.

In an exclusive interview with Asharq Al-Awsat, Lucid CEO and board member Silvio Napoli outlined four priorities for the next phase: improving cash flow and costs, with the aim of generating $1.4 billion in savings in 2026; advancing its autonomous robotaxi program with Uber and Nuro; completing the transition of its AMP-2 plant in Saudi Arabia to fully integrated manufacturing; and advancing its midsize vehicle program toward launch readiness.

Napoli noted that Lucid possesses leading technology and distinctive products but is addressing financial challenges through stronger execution, centered on three pillars: liquidity and costs; customers and quality; and corporate culture and the workforce.

His comments came on the sidelines of the fifth LEAP 2026 conference in Riyadh, held under the theme “Into New Worlds,” where Lucid is showcasing its latest electric-vehicle technologies.

He added that the company is now focused on building a disciplined operating model that can translate Lucid’s strengths into sustainable and consistent performance.

Lucid's new factory in western Saudi Arabia. (Lucid Motors)

PIF investment

Napoli described Lucid’s relationship with Saudi Arabia’s Public Investment Fund as extending beyond a traditional investor-company relationship, calling PIF an important strategic partner whose support reflects shared confidence in the company’s capabilities and long-term growth prospects.

He explained that the company and PIF share a vision of helping shape the future of mobility and supporting Saudi Vision 2030.

Lucid’s presence in Saudi Arabia gives it access to engineering talent, research capabilities and advanced computing resources, while the expansion of AMP-2 in King Abdullah Economic City represents a pivotal step, he remarked.

The company’s ambitions extend beyond producing electric vehicles to helping build an integrated ecosystem for the automotive sector, technology and advanced industries in the Kingdom, he went on to say.

PIF has been Lucid’s principal investor through key stages of its development and continues to play an important role as a strategic partner as the company moves into its next phase of growth, implements its transformation plan and expands internationally.

Localizing vehicle manufacturing

Asked about Lucid’s gradual transition in Saudi Arabia from semi-knockdown, or SKD, assembly to integrated manufacturing, including vehicle bodies, paint and component production, Napoli confirmed that the company is moving toward full vehicle manufacturing in the Kingdom.

The AMP-2 expansion marks a new chapter in Lucid’s industrial presence in Saudi Arabia, he explained. Across the 1.36 million-square-meter site, operations will include stamping and forming body panels, body construction, painting and final assembly, as well as powertrain manufacturing and battery-pack assembly.

Lucid is currently installing and commissioning the manufacturing systems required to integrate those processes and will scale production gradually as the factory, products and supplier network become ready.

The long-term objective is to establish sustainable, integrated industrial capabilities in the Kingdom that support the growth of its electric-vehicle and advanced-manufacturing ecosystem, he revealed.

A Lucid vehicle in Saudi Arabia. (SPA)

Jobs and Saudi talent

Napoli expects significant workforce growth in manufacturing, engineering, quality assurance, logistics and supply chains as AMP-2 gradually expands toward its targeted annual production capacity of 150,000 vehicles.

The company’s ambitions go beyond creating jobs and include developing specialized expertise in Saudi Arabia. Lucid is investing in Saudi talent and practical training programs directly linked to advanced vehicle manufacturing, he noted.

The company is also working closely with authorities in King Abdullah Economic City to attract suppliers tied to its manufacturing requirements. The shared ambition is to turn the city into an integrated supplier hub, with Lucid serving as one of the strategy’s main anchors and attracting leading global Tier 1 and Tier 2 suppliers.

Napoli also highlighted the success of the supplier center at the King Salman Automotive Cluster in attracting international companies specializing in automotive components, including seats, vehicle structures, stamped parts, interior systems and exterior components.

Attracting qualified suppliers to establish operations near the plant, investing in Saudi skills and increasing local content would help create a manufacturing ecosystem capable of competing globally while meeting required standards for quality and cost efficiency, he underlined.

Supply chains

Lucid’s ambitions in Saudi Arabia extend beyond vehicle manufacturing to building an integrated base for engineering, supply-chain development, scientific research and Saudi talent development.

The company is working with suppliers localizing operations in the Kingdom, King Abdullah University of Science and Technology and other research institutions in technology and innovation, as well as the Human Resources Development Fund and the National Automotive and Vehicles Academy.

Through cooperation with these entities and the Saudi government, Lucid is contributing to the training and qualification of more than 450 Saudi talents to work in the electric-vehicle sector and at AMP-2, Napoli said, adding that Lucid expects more Saudis to benefit from these programs and opportunities in the next phase.



Oil Prices Slide on Hopes of Diplomacy in Iran War

Oil tankers in Basra port (Reuters)
Oil tankers in Basra port (Reuters)
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Oil Prices Slide on Hopes of Diplomacy in Iran War

Oil tankers in Basra port (Reuters)
Oil tankers in Basra port (Reuters)

Oil prices slid to their lowest in more than a week on Monday as investors hoped for diplomatic progress on the Iran war due to this week's UN meeting.

Brent crude futures and US West Texas Intermediate crude touched their lowest since September 10 earlier on Monday. The Brent contract for November was at $102.09 a barrel at 0655 GMT, down $1.78, or 1.71%, after settling 0.91% lower on Friday, Reuters said.

The WTI October contract that is expiring on Tuesday fell $1.97, or 1.96%, to $98.33 a barrel following a ‌1.58% drop in the ‌previous session.

"It seems that a degree of risk premium is ‌being ⁠removed from oil prices ⁠on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week," said Tim Waterer, chief market analyst at KCM Trade.

"Whether that hope proves to be warranted or not is another question. Time will tell."

WTI broke a key psychological support at $100 a barrel while some investors may have rolled over their positions in the October contract a day ahead of expiry to November, a Singapore-based broker said.

Iran and the US exchanged new threats on Sunday, although President Donald Trump said ⁠he would be open to meeting Iranian President Masoud Pezeshkian, who is ‌expected to be in New York this week for ‌the United Nations General Assembly.

Iran has conveyed its conditions to mediators for re-engaging in negotiations aimed at ‌ending the war with the US, Al Jazeera cited Iran's security chief, Mohsen Rezaei, as ‌saying in an interview on Saturday.

On Monday, a spokesman ‌for the Revolutionary Guards, Hossein Mohebbi, said Iran would use new weapons and target locations not previously attacked if the US launched a ⁠new offensive against it, ⁠according to the Fars news agency.

China has asked Iran to help rein in the Houthis after an appeal to Beijing following the attacks, according to three Iranian sources familiar with the matter.


Gold Slips as Focus Remains on Middle East, Rate Outlook

Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
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Gold Slips as Focus Remains on Middle East, Rate Outlook

Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)

Gold prices slipped on Monday as market participants assessed developments in the Middle East and their implications for inflation and interest rates.

Spot gold fell 0.3% to $4,362.60 per ounce by 0417 GMT after hitting a one-week high on Friday. US gold futures were down 0.6% at $4,400.20, Reuters reported.

Iran and the United States exchanged new threats, with President ‌Donald Trump ‌warning Iran would fail economically or face its ‌leadership ⁠being wiped out ⁠if it didn't make a deal, and the Iranian military saying it would retaliate harshly to any fresh attack.

"The focus remains on geopolitics, oil and the reaction in bond yields. For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required," said Tim Waterer, chief market ⁠analyst at KCM Trade.

"Gold may trade in a ‌roughly $4,200 to $4,580 range in the near ‌term."

Oil prices fell on hopes diplomacy in the Iran war will ‌get a chance this week amid a UN meet.

The prospect of a new global rate-tightening cycle has come into focus as some of the world's top central banks ‌raise rates and signal more may be needed to tame inflation fueled by the Iran war.

The Bank ⁠of Japan ⁠became the latest big central bank to tighten on Friday, following rate increases by the Federal Reserve earlier that week and the European Central Bank the week before.

Though gold is often seen as an inflation hedge, rising rates tend to curb its demand by making interest-bearing assets more attractive.

Analysts at Standard Chartered said in a note that gold remains volatile but continues to find firm downside support from official-sector demand. They said structural drivers remain in place to lift prices, albeit at a slower pace.

Among other metals, spot silver rose 0.2% to $66.37, platinum fell 0.1% to $1,798.31 and palladium added 0.6% at $1,309.65.


Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File
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Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File

Qatar's prime minister announced on Sunday the creation of a new division of the Qatar Investment Authority dedicated to developing domestic investments.

"We aim to expand the role of the private sector in driving Qatar's economic growth," Sheikh Mohammed bin Abdulrahman Al Thani said as he announced the new division, Doha Investment, at a special edition of the Qatar Economic Forum in New York.

The annual gathering was cancelled in May, following weeks of Iranian missile and drone attacks on Gulf states, including Qatar, according to Reuters.

"It will support our strongest companies, help emerging businesses grow, deepen capital markets and attract international capital and expertise to contribute to this effort," he added.

The new division will operate as the dedicated manager of QIA's local portfolio, initially overseeing 45 state-owned enterprises that represent roughly one-third of the wealth fund's total assets, according to Sheikh Faisal bin Thani Al Thani, Qatar's minister of commerce and industry. He will serve as managing director and vice-chairman of Doha Investment.

Sheikh Faisal described the division not as a new creation but a consolidation, adding that the step has been under consideration for more than a decade.