Earlier this week, Lucid Group (NASDAQ:LCID) reduced the prices of its Air series of high-end sedans for a limited period ahead of the holiday season.
The price change comes in response to intense competition and a decline in the demand for electric vehicles.
The demand for EVs has been affected by elevated interest rates, prompting automotive manufacturers, including the leading company in the sector, Tesla (NASDAQ:TSLA.O), to lower their prices in order to maintain their market position.
According to a report by Cox Automotive, the ongoing electric vehicle (EV) price war has led companies to prioritize sales over profit margins, resulting in a decrease in the average price of EVs to $50,683 in September.
Lucid responded to this trend by reducing the price of its Air Touring model from $95,000 to $87,500 and cutting the price of the more powerful Grand Touring by $10,000 to $115,600.
Additionally, the company lowered the price of its all-wheel-drive Air Pure from $82,400 to $74,900. However, the cost of its latest rear-wheel-drive Air Pure remains unchanged at $77,400.
Lucid had reduced its car prices in August due to a challenging economic environment and the company's increased expenditure during the production ramp-up phase.
Nevertheless, the backing from the Public Investment Fund of Saudi Arabia has provided Lucid with a much-needed injection of liquidity, setting it apart from other companies in the industry facing financial constraints. Lucid is scheduled to release its third-quarter results on Tuesday.
According to the company, the current price reduction offer will remain valid until November 30.
Shares of LCID are up 2.41% in afternoon trading on Friday.