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.
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.
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.
