By Michael Elkins
Lucid Group Inc (NASDAQ:LCID) announced Thursday that the American EV company will be offering a new $7,500 credit for customers buying select variants of the Air luxury electric car. The credit unofficially announces the groups entry into what is being called a Tesla-led price war.
The recent cuts by companies like Tesla Inc (NASDAQ:TSLA) and Ford Motor Company (NYSE:F) have made it much more difficult for smaller companies such as Rivian Automotive Inc (NASDAQ:RIVN) and Lucid to grab market share at a time when high borrowing costs and inflation have consumer pulling away from high ticket items.
"We think our customers still deserve a $7,500 credit for choosing an EV," said Zak Edson, Lucid's Vice President of Sales and Service.
Lucid's credit will be available to customers from Thursday and applies to the Touring and Grand Touring models of the Air series purchased before March 31 this year.
The company's cars are not eligible for a $7,500 federal tax credit under the Inflation Reduction Act passed in August last year as the price cap for the benefit stands at $55,000. Air Touring retails from $107,400, while the Grand Touring model starts at $138,000.
Shares of LCID and RIVN are down 9% and 2% respectively on Thursday while shares of TSLA and F are up 4.89% and 1%.