Is Lucid's Saudi Connection Good for Its Stock?

Amid a broader market correction, most electric-vehicle (EV) stocks have fallen sharply this year. Young EV makers like Lucid Group (NASDAQ: LCID) fell harder on valuation concerns, as well as higher perceived risks. The company attracted high interest from buyers and investors alike after it delivered cars that offered far-longer ranges than other available options in the market.

However, Lucid is facing challenges in ramping up production. It delivered just 360 EVs in the first quarter. The company has a lot to prove, and its partnership with Saudi Arabia will likely play a key role in its growth. Let's discuss why.

Last month, Lucid announced a deal with the government of Saudi Arabia under which the latter committed to purchase up to 100,000 cars from Lucid in 10 years. The deliveries under this deal should commence before the second quarter of 2023.

Source Fool.com