Lucid Motors, the Silicon Valley-based electric vehicle startup, is looking to amp up its presence in the motor industry by investing $10 million into a new engineering and research center in Southfield, Michigan. This move, confirmed by sources to The Detroit News, is set to create over 250 jobs in the region. The anticipated facility will be located in the Travelers Towers on Evergreen Road, eyeing an April opening date. While Lucid and the Michigan Economic Development Corp. have remained tight-lipped, the details are expected to be hashed out in an upcoming Michigan Economic Development Corp.'s Strategic Fund Board meeting.
The project marks another leap towards Michigan’s goal to secure more white-collar investments under the Whitmer administration, particularly in the EV sector. Despite the seeming slowdown in the EV market, Governor Gretchen Whitmer's administration is actively pushing for R&D tax credits aimed at enhancing the competitive edge of the state. The $6 million performance-based grant that Lucid seeks, reported by Crain's Detroit Business, would significantly buttress their newest strategic research hub, which is set to become the company's third major U.S. employment center.
However, the landscape is not all smooth driving for Lucid Motors. Once aiming to produce and ship a lofty 90,000 EVs in 2024, the company has had to sharply brake those ambitions, revealing plans to build only 9,000 electric vehicles for the year, as their demand struggles to accelerate. This slashed target follows a $2.8 billion loss in 2023, as reported by Yahoo Finance. The luxury EV maker, recognized for the Lucid Air sedan and its future Gravity SUV, is grappling to navigate through a market that's not growing as quickly as some had anticipated.
In a strategic pivot, the company has decided to also not just sell cars but to selectively license its EV technology. Simultaneously, they're catering to the significant Middle Eastern market with a deal involving the Saudi Public Investment Fund, which is planning to purchase up to 100,000 EVs from Lucid over the next decade. This could prove to be a crucial lifeline allowing the company to channel more development into their projects back in the States, including the forthcoming Michigan facility.
While its stock stumbled following the report of its financial results, the Lucid investment in Michigan is an embodiment of the resilient spirit of the EV industry despite its current challenges. Both Lucid and the Michigan landscape are set to transform, potentially signaling a recharged future for an industry that's been looking to secure its foothold in an uncertain marketplace.
