Breaking News
More () »

Arizona lands new factory for electric-car maker

Gov. Doug Ducey announced plans for Lucid Motors to expand their operations to Arizona.

Arizona has landed an electric-car factory that could bring 2,000 jobs to Casa Grande in the next six years.

Gov. Doug Ducey announced Tuesday that start-up carmaker Lucid Motors plans to spend $700 million on the factory over the next six years, with construction set to start next year.

The facility will build Lucid's first high-powered electric cars, luxury models priced at more than $100,000 and potential competitors to Tesla Motors' vehicles.

"Our appeal is our endless drive to be the best," Ducey said at a news conference in front of the state Capitol, with Lucid's only two prototype vehicles parked in front of him.

"Arizona's commitment to low taxes and light regulation continue to make us the best place in the nation to start and grow a business."

Claudia Pavlovich, governor of neighboring Sonora, Mexico, also announced that Lucid's parts would be outsourced to plants in Sonora.

"The economic teams of Arizona and Sonora have been working together as a single team," Pavlovich said.

Lucid's vehicles don't have a name yet, and executives with the Menlo Park, California-based company acknowledge they will have to raise money to build the Casa Grande plant.

"We know we've got to raise more money and we're in the process of other fundraising rounds," said Brian Barron, Lucid's manufacturing director. He said the company had enough money to continue developing its vehicles.

Lucid's electric car factory will get some juice from taxpayers.

Arizona offered tax breaks that start at $5 million and could hit $70 million, depending on the company meeting hiring and other goals, according to Sandra Watson, CEO of the Arizona Commerce Authority.

Watson said the breaks weren't created for Lucid; they were already on the state's menu for helping companies.

Pinal County bought land for the plant and will lease it back to Lucid. Casa Grande officials didn't respond to a request for information on its breaks for Lucid.

Hiring in Casa Grande could start next year. Salaries weren't disclosed.

The company's goal is to produce at least 10,000 vehicles by the end of 2019, Barron said.

Development of the site is expected to begin during the second quarter of 2017.

Before You Leave, Check This Out