U.S. electric car maker Lucid Group announced on Tuesday that Saudi Arabia has agreed to buy up to 100,000 electric vehicles from it over the next decade.
Saudi Arabia's sovereign wealth fund owns about 62 percent of the U.S.-based automaker, which started producing the Lucid Air luxury sedan last September.
Driven by the news, Lucid's stock rose nearly 6% after the market on Tuesday.
The Saudi Ministry of Finance has agreed to buy at least 50,000 vehicles over the next 10 years, with an option to buy another 50,000 over the same period, Lucid said.
Lucid said Saudi orders will be modest at first, ranging between 1,000 and 2,000 vehicles a year from 2023. Deliveries will increase to 4,000 to 7,000 barrels per year starting in 2025, Lucid said.

The pace of EV development is rapidly increasing. The UK deadline for the end of new ICE-powered car sales in 2030 is now just over eight years away and every car major manufacturer is working fast to produce a line-up of electric vehicles to satisfy growing customer demand.