The company expanded its presence in a regional market abroad.
High-end electric vehicle (EV) maker Lucid Group (LCID 4.47%) enjoyed a nice share price bump on Monday. The company’s stock closed nearly 5% higher on the day, thanks in no small part to a new deal it signed in an important foreign market. By contrast, the S&P 500 index declined marginally in Monday’s session.
A new partnership with an airline in Saudi Arabia
That day, Lucid’s business partner, Riyadh Air, announced that the two companies had signed a memorandum of understanding to collaborate. The partnership will see the pair team up in marketing activities, commercial ventures, and operations.
The arrangement was announced by the Saudi Arabia-based airline at the Dubai Airshow. The carrier wrote in a press release that this inaugural partnership deal between the two companies is “aligned to a shared vision for the future of sustainable transportation.”
The deal was illustrated by a pair of Lucid cars at the Riyadh Air pavilion, wrapped in the branding of both companies.
Riyadh Air is a new airline fully owned by the Saudi government’s sizable Public Investment Fund. It is slated to commence operations in 2025.
Building on a factory foundation
Riyadh Air’s announcement represents the expansion of Lucid’s presence in Saudi Arabia. In late September, it launched production at the country’s first-ever car factory, located in the city of Jeddah. In the facility’s current first phase of operation, it has the capacity to finish 5,000 of its EVs per year. The company aims to ramp that up considerably, with ambitions to reach a capacity of 155,000 units.
