SAN FRANCISCO – Electric vehicle maker Lucid has reduced the prices of its Air luxury sedans by up to $12,400, responding to increased competition in the U.S. EV industry and a price war initiated by Tesla.
Lucid has cut the price of the Air Pure to $82,400 from $87,400, lowering the prices of the more powerful Touring and Grand Touring versions by $12,400 to $95,000 and $125,600 respectively. The company has stated that this offer will remain valid as long as supplies last.
Tesla’s Model S and Model S Plaid, which directly compete with the Lucid Air, have been priced at $88,490 and $108,490 respectively, reduced from their starting prices of $104,990 and $135,990 at the beginning of the year.
Last year, Lucid and other companies in the industry had to raise their prices due to increasing raw material costs and supply chain challenges caused by COVID-19. However, concerns about inflation and a potential recession have led to a decrease in consumer demand, resulting in market leader Tesla reducing its prices this year.
This pricing trend has created difficulties for Lucid and other startups that are already facing competition from traditional automakers entering the electric vehicle market, as they struggle to gain market share. While lower-priced models can benefit from the $7,500 federal tax credit under the Inflation Reduction Act, more expensive vehicles like the Lucid Air are not eligible.
Lucid, based in Newark, California, is expected to report increased losses in its second-quarter earnings on Monday due to supply chain issues that affected production from April to June.
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