What happened
Lucid Group (LCID +0.32%) has become unstoppable: The electric vehicle stock soared again today, jumping an eye-popping 45% as of 1 p.m. EDT.
Just when investors were looking forward to Lucid's big delivery day coming up this weekend, CEO Peter Rawlinson's latest comments, including about Tesla (TSLA +2.59%), are sending the stock even higher.
So what
Although Lucid is a closely watched stock, one recent development that investors may have missed is the company's plans for Saudi Arabia.
On Sept. 6, Arabic television news channel Al Arabiya revealed that Saudi Arabia's Standards and Metrology Authority had approved Lucid's plans to start production of electric vehicles in the kingdom by 2024.
Image source: Lucid Group.
This morning, at a conference in Riyadh, Rawlinson revealed Saudi Arabia is the second-largest market for Lucid in terms of preorders and that he eventually dreams of selling the Lucid Air Pure model for a price point as low as $70,000 a car, as compared with the company's Dream Edition priced at $169,000 a car. Dream Edition, Lucid's first as well as most expensive model, is ready for deliveries.
Arab News further reported how Rawlinson compares Lucid with Tesla. "The future will be defined by a tech race between the companies that adopt and embrace EV technology, and that's why I would believe Tesla's value today of over $1 trillion is based on its technological prowess," he said.
In other words, Rawlinson believes it's a battle of efficiency. To put that in perspective, Lucid's Dream Edition was officially accredited by the U.S. Environmental Protection Agency with a range rating of 520 miles, making it the longest-range EV so far.
There's a deep relation between Lucid and Saudi Arabia -- Saudi Arabia's sovereign wealth fund, Public Investment Fund, is a major shareholder in Lucid, owning a 62.9% stake in the company, as reported in July. With Saudi Arabia now targeting 30% of all cars in its capital to be electric by 2030, Lucid already has a big international market ripe for entry.
Now what
Rawlinson's focus on efficiency, even for lower-priced cars, could go a long way in helping Lucid grab a bigger share of a market that's likely to be flooded with EVs in the coming years with every automaker scrambling to join the EV race.
Rawlinson's comments came just one day after Lucid confirmed it'll be delivering its first Dream Edition sedans starting Oct. 30, a milestone that's already triggered frenzied buying activity in the EV stock. With Lucid not only giving followers regular glimpses into the big event through pictures on social media platform Twitter but also planning to organize a rally for its first customers' inaugural drive -- and setting Nov. 15 as the date of its quarterly earnings release -- interest in the red-hot Lucid stock is unlikely to wane anytime soon.
