Lucid (NASDAQ:LCID) stock is in the spotlight after the pure-play electric vehicle (EV) company announced an expansion into the United Arab Emirates (UAE) with the opening of a new retail studio in Dubai. Lucid now operates two studios in the Middle East — the first of which was opened in Riyadh, Saudi Arabia in 2022 — and 38 studios worldwide.
“With our studios in Riyadh and now in Dubai, we look forward to providing drivers in the Middle East and its surrounding areas with the innovative and dynamic experience of the award-winning Lucid Air,” said Faisal Sultan, Lucid Vice President and Managing Director, Middle East.
Lucid’s studios offer customers the chance to experience and learn about the the Lucid Air, which is currently the company’s only vehicle. Lucid previously announced that production of its second vehicle, the Gravity SUV, will begin later this year.
It wouldn’t be surprising for Lucid to further expand into the Middle East, as Saudi Arabia’s Public Investment Fund (PIF) and subsidiary Ayar Third Investment Company are the largest shareholders of the company.
LCID Stock: Lucid Opens Second Studio in the Middle East
Prices for the Lucid Air in the UAE will start at around $84,000. Furthermore, the Air Sapphire All-Wheel Drive, Tri-motor will carry the highest price tag at around $271,000. These prices are well above the Air starting price of $69,900 in the U.S.
According to the Dubai Water and Electricity Authority, Dubai is expected to have 12,852 EVs on the road by 2025.
In addition, the UAE’s EV industry is growing quickly. Its EV demand is expected to grow at a compound annual growth rate (CAGR) of 30% until 2028.
Meanwhile, UAE EV revenue for 2024 is expected to be $270.3 million, according to Statista. Assuming Lucid receives 5% of that revenue would add $13.52 million of sales for the company. Lucid reported first-quarter revenue of $172.7 million.
The UAE government is committed to reaching zero carbon emissions by 2050. Lucid is taking advantage of that by laying the foundation for its Middle East plans amid a rapidly growing market.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
