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Saudi-Backed Lucid in Talks for Electric Car Factory Near Jeddah

  • Saudi sovereign wealth fund would provide financing for site
  • Kingdom aims to become a regional hub for electric vehicles
Lucid Air
Lucid AirPhotographer: David Paul Morris/Bloomberg

Lucid Motors Inc. is in talks with Saudi Arabia’s sovereign wealth fund to build an electric vehicle factory potentially near the Red Sea city of Jeddah, according to people familiar with the matter.

The move would mark a significant expansion for Newark, California-based Lucid. Saudi Arabia is trying to become a Middle Eastern hub for manufacturing EVs as it diversifies its economy from oil.