Lucid Motors has officially announced the completion of its first phase of construction at its Advanced Manufacturing Plant (AMP-1) facility in Casa Grande, Arizona, and plans to begin the first production phase in Spring 2021. As the commissioning of production equipment and processes underway, Lucid looks to begin manufacturing its Dream Edition of the Air within the coming months, bringing another all-electric automaker to the highly competitive American car market.
The AMP-1 facility was designed with a future-ready focus that allows for additional phases of expansion at the site, which could come in handy if Lucid manages to sell a lot of vehicles. Lucid also stated that this is not the only phase of construction, and this marks the completion of the first phase only. The next phase is set to begin in early 2021 and will make way for the production of Lucid’s introductory SUV in 2023, which has been given the name Project Gravity.
Credit: Lucid Motors
Lucid CEO and CTO Peter Rawlinson detailed his company’s development of the massive land slot in Arizona in a press release from the automaker.
“We broke ground on the 590-acre Lucid AMP-1 site in Casa Grande, Arizona, on December 2, 2019, and slightly less than a year later we have completed the first purpose-built EV factory in North America. The effort and agility demonstrated by this team is truly astounding, as we’re already commissioning equipment compatible with the Lucid manufacturing system to start production of the next-generation EV, Lucid Air, in just a few months,” Rawlinson stated.
To ensure the production is accurate and effective and officially bring the plant into commission, Lucid has already built a full beta prototype test fleet, which comprises several Air models. Lucid’s manufacturing system utilizes advanced processes, including an aircraft-inspired riveted and bonded monocoque body structure, which replaces spot welds, a commonly used tactic in automotive manufacturing. The strategy behind using rivets and monocoque body structures was to increase the Air’s structural efficiency, a main focus of its introductory sedan.
When the production lines begin operation next Spring, Lucid says it will be capable of building 30,000 units annually, which will supply global markets beginning in North America. The Dream Edition will be first, with the Grand Touring and Touring models following shortly thereafter. The company’s base model, which was recently labeled the Lucid Air Pure, will begin production in early 2022.
Lucid chose Arizona for its first production plant for several reasons. Not only were infrastructure, talent, location, and pre-existing automotive supply chain significant advantages, but the land was suitable for a large facility that would invite expansions as the company intends to grow over the coming years. The company purposely chose this site, intending to build onto the plant within the next few years, and it’s state-of-the-art, water-based paint shop can be included as it meets the needs of all future phases of the factory, Lucid said. Four phases of construction are planned through 2029, taking the current square footage of 999,000 to 5.1 million by when it is completed.
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- Lucid’s Water-Based paint facility. (Credit: Lucid Motors)
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- Lucid’s Water-Based paint facility. (Credit: Lucid Motors)
In 2028, Lucid will be able to build 400,000 vehicles per year at the facility.
“In building this factory, we adhered to several important manufacturing philosophies, including the tenets of ‘Future Ready’ and ‘On Time,’ together which have allowed us to effectively manage our investment and build a brand new factory from the ground up,” Vice President of Manufacturing Peter Hochholding said. “As we add new platforms and vehicles to our lineup, the planning that went into this facility ensures that we will always be able to keep up with growing customer demand for advanced electric vehicles.”
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Tesla ends Full Self-Driving purchase option in the U.S.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.
The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.
Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:
🚨 Tesla has officially moved the outright purchase option for FSD on its website pic.twitter.com/RZt1oIevB3
— TESLARATI (@Teslarati) February 15, 2026
There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.
Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.
Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.
Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.
Elon Musk
Musk bankers looking to trim xAI debt after SpaceX merger: report
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.
Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.
The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.
The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.
Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”
That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.
X merged with xAI last March, which brought the valuation to $45 billion, including the debt.
SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.
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Tesla pushes Full Self-Driving outright purchasing option back in one market
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.
The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.
NEWS: Tesla is ending the option to buy FSD as a one-time outright purchase in Australia on March 31, 2026.
It still ends on Feb 14th in North America. https://t.co/qZBOztExVT pic.twitter.com/wmKRZPTf3r
— Sawyer Merritt (@SawyerMerritt) February 13, 2026
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.
The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.
Tesla hits major milestone with Full Self-Driving subscriptions
However, Tesla just launched it just last year in Australia.
Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.
The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.
In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.
The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.
Tesla ends Full Self-Driving purchase option in the U.S.
Musk bankers looking to trim xAI debt after SpaceX merger: report
