Lucid, the EV manufacturer, cuts Air sedan prices amidst fierce competition.

By Abhirup Roy

SAN FRANCISCO​ (Reuters) –

Lucid⁤ Slashes Prices​ of ‍Air Luxury Sedans Amidst ‍Rising Competition

Electric vehicle maker Lucid has announced a significant price reduction for its Air luxury sedans, offering savings of up to $12,400. This move comes⁢ as the U.S. ​EV industry experiences heightened competition and a price war ignited by​ Tesla.

Lucid has reduced the price of the Air Pure by $5,000, bringing it down to $82,400 from $87,400. Additionally, the Touring and Grand Touring versions have seen a price cut of $12,400, now priced at ‍$95,000 and $125,600 ⁢respectively. The company ‍has stated‍ that this offer will be available while supplies last.

A spokesperson for Lucid has not provided specific details regarding the quantity of stock included in this ‌offer.

Tesla’s Model S and ​its performance version, the Model S Plaid, which directly compete with the Air, have also reduced‌ their​ prices. The Model S is now priced at⁢ $88,490, down from $104,990 at the beginning of the ​year, while the ⁣Model⁤ S Plaid‌ is priced at $108,490, down from $135,990.

About⁢ a year ago, Lucid and ⁢other EV manufacturers had ⁢to increase their prices due to rising raw material costs and supply chain challenges caused by the COVID-19 pandemic. However, with rising interest ‍rates and concerns of a recession,⁣ consumer demand has decreased, leading market leader⁤ Tesla to lower its ⁤prices this year.

This⁣ price reduction by Tesla ​has had ⁢a​ ripple effect on the industry, making it​ challenging for startups like ⁢Lucid, who are already facing competition from traditional automakers entering the electric vehicle market,​ to gain market share.

While ‍lower-priced EV models can benefit ⁤from ⁣a $7,500 federal tax credit under the​ Inflation Reduction Act, more expensive cars ​like Lucid’s Air are ‌not eligible for ⁤this incentive.

Lucid,‍ based in Newark, California, is expected to report deepening losses in​ its second-quarter earnings due to supply chain issues that impacted production from​ April⁤ to June.

(Reporting by Abhirup ⁢Roy in San⁢ Francisco; editing by Jonathan Oatis)

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