Awkward: Saudi Arabia’s new EV brand takes on the U.S. rival it already controls
The Saudi wealth fund’s new EV will compete with Chinese rivals and with Lucid, the U.S. carmaker the fund controls.
Saudi Arabia's homegrown electric vehicle (EV) maker, Ceer Motors, is preparing to challenge a U.S. rival it already controls. Ceer, majority-owned by the Public Investment Fund (PIF), unveiled two EV models on September 21, with deliveries set for March 2027. Designed and engineered in Saudi Arabia, the vehicles will be produced at Ceer's facility in King Abdullah Economic City, north of Jeddah.
This marks the Public Investment Fund's third EV venture, following its 5% ownership of Tesla in 2018 (sold by the end of 2019) and a $8 billion investment in Lucid, a California-based EV company that has yet to turn a profit.
The U.S. faces an awkward rivalry as Ceer's debut puts Saudi Arabia on a path to build its own EV brand while its sovereign wealth fund owns a majority stake in Lucid. Ceer's CEO, James DeLuca, revealed the company's target of starting production early next year, with plans for additional models over the next five years and the aim to source nearly half of its components locally by 2034.
Ceer's Exobot sedan and SUV are high-powered premium EVs, targeting the segment where Lucid sells its luxury models. The company has yet to announce prices, but Russo notes that Ceer's vehicles may align more closely with Lucid's premium offerings than BYD's mass-market segment. Lucid, now under new leadership and facing a 60% slump in shares this year, has cut jobs, reduced production, and recalled vehicles due to fire risks.
Despite this, PIF maintains a 58% stake in Lucid and has pledged to buy up to 100,000 Lucid vehicles over a decade.
Saudis purchase around 1 million new vehicles annually, with 10,000 to 20,000 being electric, with estimates ranging from 35,000 to 40,000 EVs in 2025. However, Ceer's factory is designed for up to 240,000 vehicles annually, far exceeding current domestic demand. Exporting is thus a key strategy, as Saudi Arabia aims to build an EV industry catering to the Gulf, North Africa, and beyond.
Chinese EV manufacturers, led by BYD, dominate the Middle East market, with Ceer facing a tough challenge from established rivals with substantial manufacturing capacity, strong supplier networks, and low-cost pricing. Ceer must compete on price, quality, and brand image to succeed in both domestic and international markets.
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