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EV maker Lucid slashes prices of Air sedan as part of offer amid heating competition

Published 08/05/2023, 01:11 PM
Updated 08/05/2023, 03:20 PM
© Reuters. A logo is seen on the wheel of a Lucid Air Dream Edition parked at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) began trading on the Nasdaq stock exchange after completing its business combination with Churchill Capital Corp IV in New York City, N
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By Abhirup Roy

SAN FRANCISCO (Reuters) - Electric vehicle maker Lucid cut prices of its Air luxury sedans by as much as $12,400 as part of an offer, it said on Saturday, amid rising competition in the U.S. EV industry and a price war sparked by Tesla (NASDAQ:TSLA).

Lucid reduced the price of the Air Pure by $5,000 to $82,400 from $87,400, and cut prices of the more powerful Touring and Grand Touring versions by $12,400 to $95,000 and $125,600, adding that the offer would be valid as long as supplies last.

A spokesperson for Lucid said the company was unable to provide details on how much stock will be part of this offer.

Tesla's Model S and its performance version Model S Plaid - direct competitors with the Air - are priced at $88,490 and $108,490 down from $104,990 and $135,990 at the beginning of the year.

Over a year ago, Lucid, which is majority owned by Saudi Arabia's Public Investment Fund, and its peers had to raise prices of its cars as rising raw material prices and nagging supply chain bottlenecks sparked by COVID-19 hit the automotive industry hard.

But rising interest rates to curb inflation and fears of recession have dampened consumer demand, prompting market leader Tesla to slash prices this year.

That has sent ripples through the industry, making it difficult for money-losing startups such as Lucid, which also face competition from traditional automakers launching electric models, to grab market share.

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Helping some lower-priced models woo customers is a $7,500 federal tax credit under the Inflation Reduction Act, but more expensive cars such as Lucid's Air are not eligible.

Newark, California-based Lucid is expected to show deepening losses in its second-quarter earnings on Monday after reporting a fall in April-June production due to supply-chain problems.

Latest comments

The price war in the new energy industry is in full swing, but for the charging industry, which just needs to replenish energy, this is an important positive factor. Charging companies with leading advantages like NAAS (NASDAQ:NAAS) will enjoy potential market growth.
Looks and drives 10 times better than a Tesla model S
After 2022 new tax law changes require your income be under $150K to get the $7500 credit.   The people that can actually afford these cars are the ones that they are discouraging from buying.   Thanks, Bribery Brandon.
You sound like you know what you are talking about, so you probably also know, but appear to have forgotten, that the EV credit applies to cars up to a cost of $55,000; $80,000 for trucks, very much helping to make EVs affordable to the middle class.
Lucid the next EV maker to go bankrupt.
Saudis own 60% of the company. However, gonna go bankrupt with unlimited funds available if needed?
Pathetic company, let it die
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