Thursday, July 18, 2024
NewsLucid Motors will Drop the Price of the Air by $7,500 in...

Lucid Motors will Drop the Price of the Air by $7,500 in the US

Lucid will offer a rebate on some versions of the Air in order to remain competitive with Tesla.

  • This is the same amount as the Clean vehicle tax credit, to which the Air is not eligible.

  • A price cut will help Lucid better compete with Tesla, which also recently slashed its prices.

  • This discount only applies to the Touring and Grand Touring models, not the base version.

Lucid Motors has announced it will reduce the price of two versions of the Air electric luxury and performance sedan by $7,500 in the United States.

This announcement is not very surprising since most automakers have cut their EV’s prices in the last month following Tesla, which reduced the Model Y by up to $13,000 for certain versions.

Tesla can afford to do so in order to remain competitive since it made the largest profit margin per vehicle in the entire industry, but this is more difficult for start-up automakers such as Lucid and Rivian, which have yet to make a profit.

In the case of Lucid, the automaker says that it chose to offer a $7,500 rebate, the same amount as the Clean Vehicle tax credit in the US, since it believes that its customers deserve the credit for choosing an EV, even if every version of the Air is too expensive to qualify for the actual government incentive.

This price drop will only affect two trim levels, however: The $107,400 Touring and the $138,000 Grand Touring.

This means that the new entry-level version called Pure will remain priced at $89,050 for the foreseeable future. Despite this, it is still slightly more affordable than the base Tesla Model S, its most direct competitor.

Buyers who want to benefit from this credit will have to hurry since the company says it will only be effective until March 31.

During the third quarter of 2022, Lucid said it had over 34,000 orders for the Air, which is about 3,000 less than it did at the end of the previous quarter. About half of this number can be attributed to deliveries while the other half comes from cancellations.

Source: Reuters


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