"Lucid will face a make-or-break moment with the launch of its midsize electric SUV next year. The Air sedan and Gravity SUV are luxury models out of reach for most buyers. The midsize SUV will aim to change that. It will be made at Lucid's upcoming plant in Saudi Arabia, which ironically would protect it from heavy tariffs. Lucid's upcoming midsize electric SUV might have a small edge over its U.S.-made rivals."
"Speaking at the UBS Global Industrials and Transportation Conference on Wednesday, Lucid's Chief Financial Officer, Taoufiq Boussaid, elaborated on how production in Saudi Arabia could protect the electric SUV from tariffs. We found ourselves in a fortunate space having the option to manufacture the car in [Saudi Arabia], Boussaid said. What it does is it allows us basically to import from China part of the bill of materials without having to incur the significant duty, he added."
"Boussaid added that Lucid will source the high-voltage battery pack, the most expensive component of an EV, from China alongside several other unspecified equipment. Given the timeframe that we have to get this car ready we find ourselves in a very comfortable spot being able to import this bill of materials, he added."
Lucid plans to launch a midsize electric SUV next year aimed at broader affordability compared with the luxury Air sedan and Gravity SUV. Production will occur at a new Saudi Arabia plant, a location that can reduce tariff costs versus U.S. manufacturing. The vehicle, reportedly competing with the Tesla Model Y and Rivian R2 and expected to be called the Lucid Earth, will allow Lucid to import key components from China with lower duties. Lucid intends to source the high-voltage battery pack from China. The tariff differentials could materially affect pricing and competitiveness.
Read at insideevs.com
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