Lucid Motors has made a significant move to stimulate demand for its electric sedans by reducing the prices of its most affordable models. The price cuts come in the wake of a challenging year for the company, which saw lower-than-expected sales figures.
Key Takeaway
Lucid Motors has significantly lowered the prices of its entry-level electric vehicles, aiming to bolster sales following a challenging year. The company is also offering additional incentives, including a contribution towards home charging solutions and complimentary maintenance.
Price Reductions Across the Lucid Air Lineup
The rear-wheel drive version of the base model Lucid Air Pure will now be available at $69,900, marking a substantial decrease from its previous price of $77,400. Additionally, the more powerful Lucid Air Touring model, which boasts all-wheel drive performance and approximately 50% more horsepower, will now start at $77,900, down from $85,900. The all-wheel drive version of the Pure is being discontinued. Even the high-end Lucid Air Grand Touring, offering over 500 miles of range, will see a slight price reduction to $109,900 from $110,900.
Additional Incentives
As part of the new pricing strategy, Lucid has announced a $1,000 contribution towards the purchase of a home charging solution, along with complimentary scheduled maintenance for two years or up to 24,000 miles with every new purchase.
Challenges and Future Prospects
The price adjustments come on the heels of Lucid’s announcement of delivering only 6,001 cars throughout 2023. The company is set to disclose its financial results for the year on February 21. Despite the price reductions implemented last year, Lucid’s vehicles do not qualify for the $7,500 federal EV tax credit, although they are eligible for the leasing credit of the same amount.
CEO Peter Rawlinson has openly acknowledged the company’s marketing challenges, emphasizing the need to raise awareness about both the car and the company itself. The decision to make the Lucid Air Pure more affordable could potentially drive higher sales, especially considering its recent launch in late 2023.
While Lucid is also developing an electric SUV, expected to broaden its appeal to a wider customer base, its release is not anticipated until the end of this year at the earliest. The company has commenced shipping the initial few hundred Air sedans to its financial supporter, Saudi Arabia, which has committed to purchasing up to 100,000 of Lucid’s EVs over the next decade. However, this initiative will be constrained in the short term, as Lucid has yet to establish a full-scale production facility in the Kingdom.
