Lucid, the electric vehicle maker, has announced a significant price reduction for its Air luxury sedans. The move comes as competition in the U.S. EV industry intensifies and a price war ensues, largely sparked by Tesla. Lucid’s price cuts range from $5,000 to $12,400, depending on the model.
The price reduction affects three versions of the Lucid Air: the Air Pure, Touring, and Grand Touring. The Air Pure’s price has been reduced by $5,000 to $82,400, while the Touring and Grand Touring versions have seen price cuts of $12,400, bringing their prices to $95,000 and $125,600, respectively. Lucid has stated that these reduced prices will be valid until supplies last.
While the company has not provided specific details about the availability of stock for this offer, the price cuts are expected to make Lucid’s luxury electric vehicles more competitive against Tesla’s Model S and Model S Plaid. Tesla recently reduced the prices of these models to $88,490 and $108,490, respectively, down from $104,990 and $135,990 earlier this year.
The automotive industry has experienced significant challenges due to rising raw material prices and supply chain disruptions caused by the COVID-19 pandemic. Lucid and other EV manufacturers had to raise prices over a year ago to offset these difficulties. However, the industry is now facing a different set of challenges, including rising interest rates to curb inflation and fears of a recession, which have dampened consumer demand.
Tesla’s decision to slash prices this year has had a ripple effect throughout the industry, making it particularly challenging for money-losing startups like Lucid to gain market share. In addition to the competition from Tesla, Lucid also faces competition from traditional automakers entering the electric vehicle market.
While some lower-priced EV models can benefit from a $7,500 federal tax credit under the Inflation Reduction Act, more expensive vehicles like Lucid’s Air are not eligible for this incentive. This factor further adds to the challenges faced by luxury EV manufacturers in attracting customers.
Lucid, which is majority-owned by Saudi Arabia’s Public Investment Fund, is expected to report deepening losses in its second-quarter earnings. The company experienced a decline in production from April to June due to supply chain problems, which will likely contribute to its financial difficulties.
The price cuts by Lucid reflect the increasingly competitive nature of the U.S. EV industry. As the market continues to evolve and new players enter, established manufacturers are adjusting their strategies to remain competitive. Lucid’s decision to reduce prices is aimed at attracting more customers and increasing market share in the luxury electric vehicle segment.
In conclusion, Lucid has cut prices for its Air luxury sedans in response to growing competition and a price war in the U.S. EV industry. The price reductions range from $5,000 to $12,400, making Lucid’s electric vehicles more competitive against Tesla’s models. However, the industry’s challenges, including rising interest rates and limited incentives for luxury EVs, make it difficult for companies like Lucid to gain market share. The company is expected to report increasing losses in its second-quarter earnings, reflecting the impact of supply chain disruptions. By reducing prices, Lucid aims to attract more customers and increase its presence in the luxury EV market.
Original Story at www.reuters.com – 2023-08-05 17:11:00
Comments are closed.