Photo: Lucid | Edited
Despite a difficult production ramp-up, Lucid sees no other way forward than try and match Tesla’s price war with discounts on some of its models. This time, the discounts apply to purchases, not leases, as was the case a month ago when Tesla first announced its massive price cuts.
Lucid is one of the most promising startups trying to replicate Tesla’s success in the EV market. It has great technology, as demonstrated by the Lucid Air sedan, which allowed it to become the efficiency champion in the EV market. Nevertheless, it has struggled with production and had to adjust production targets several times before finally getting it right at 7,000 units in 2022.
Lucid woes have caught the attention of Elon Musk, who predicted twice that the startup would not end well. In June last year, Musk said that Rivian and Lucid “are heading toward bankruptcy.” Only a couple of months ago, he bashed Lucid again. “They are not long for this world,” Musk famously said, reacting to the news about Lucid’s struggles to retain customers.
Nevertheless, Musk’s pessimism, although warranted considering Lucid’s ballistic trajectory in the past year, does not necessarily reflect the real situation. Unlike Tesla, Lucid has the Saudi Arabia Public Investment Fund (PIF) as its most powerful backer, although this wasn’t known at the time Musk made his remarks. PIF completed a $915 million cash injection in December 2022 and is now rumored to control the majority of Lucid shares. It’s hard to believe PIF would let Lucid and its investment go down the drain.
We believe Lucid is in a good position to fight back against Tesla’s price cuts. And fight it did, with a sizeable discount matching the IRA tax credit. Lucid doesn’t have models that qualify for a tax credit, but it tries to compensate with a similar deal. According to Lucid’s website, the carmaker is offering a $7,500 discount to customers who take delivery of a Lucid Air Grand Touring or Air Touring until March 31.
There’s also a footnote stating that the car must be delivered no later than April 30, 2023, to get the discount. Besides that, it only applies to certain configurations, so vehicles configured with Stealth look, PurLuxe interior, or Metal roof are excluded. Moreover, you cannot combine this offer with the previous leasing incentives, which also amounted to $7,500.
The new discount lowers the price of the Lucid Air Grand Touring from $138,000 to $130,500, whereas the Lucid Air Touring has its price cut from $107,400 to $99,900. The rest of Lucid’s lineup, including the popular Air Pure trim, would not benefit. The Air Pure’s prices start at a more palatable $87,400, although the order book is only open for the more expensive dual-motor variant, which costs $92,900.
Lucid woes have caught the attention of Elon Musk, who predicted twice that the startup would not end well. In June last year, Musk said that Rivian and Lucid “are heading toward bankruptcy.” Only a couple of months ago, he bashed Lucid again. “They are not long for this world,” Musk famously said, reacting to the news about Lucid’s struggles to retain customers.
Nevertheless, Musk’s pessimism, although warranted considering Lucid’s ballistic trajectory in the past year, does not necessarily reflect the real situation. Unlike Tesla, Lucid has the Saudi Arabia Public Investment Fund (PIF) as its most powerful backer, although this wasn’t known at the time Musk made his remarks. PIF completed a $915 million cash injection in December 2022 and is now rumored to control the majority of Lucid shares. It’s hard to believe PIF would let Lucid and its investment go down the drain.
We believe Lucid is in a good position to fight back against Tesla’s price cuts. And fight it did, with a sizeable discount matching the IRA tax credit. Lucid doesn’t have models that qualify for a tax credit, but it tries to compensate with a similar deal. According to Lucid’s website, the carmaker is offering a $7,500 discount to customers who take delivery of a Lucid Air Grand Touring or Air Touring until March 31.
There’s also a footnote stating that the car must be delivered no later than April 30, 2023, to get the discount. Besides that, it only applies to certain configurations, so vehicles configured with Stealth look, PurLuxe interior, or Metal roof are excluded. Moreover, you cannot combine this offer with the previous leasing incentives, which also amounted to $7,500.
The new discount lowers the price of the Lucid Air Grand Touring from $138,000 to $130,500, whereas the Lucid Air Touring has its price cut from $107,400 to $99,900. The rest of Lucid’s lineup, including the popular Air Pure trim, would not benefit. The Air Pure’s prices start at a more palatable $87,400, although the order book is only open for the more expensive dual-motor variant, which costs $92,900.
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