Tesla recently reduced the price of the Model S sedan by $10,000 to $96,630, along with shipping. While the initial Air Pure starts at $89,050 along with shipping, the current launch edition of the trim has features that move it to just over $100,000.
Lucid has also lost the $7,500 tax credit for consumers outlined in last year’s Inflation Reduction Act. The new legislation set a $55,000 price cap for electric sedans to qualify and income limits for buyers.
On the bright side, as per previous company statements, Lucid was already getting ready to deliver more accessible editions of the Air in recent weeks by removing content comparisons to its higher-priced vehicles.
Lucid Air Touring deliveries in November
The base Air Pure has a metal roof instead of glass, rear-wheel drive instead of all-wheel drive, and a smaller battery pack.
The midlevel Air Touring, which began deliveries in November, includes a metal roof as standard for $109,050 plus shipping. The Lucid costs $4,500 more because it has a glass roof, which is standard on the Tesla Model S. The Air Touring comes familiar with a driver-assistance package, but the Pro version costs $10,000 more, and an upgraded stereo costs $4,000.
Similarly, Lucid announced in December that it would be withdrawing features from its top-tier Grand Touring trim to reduce costs. Standard features included Pro driver assistance, an updated stereo, and 21-inch Aero Blade wheels.
The Grand Touring is now $139,650, down from $155,650 initially, including the Shipping price.
This flexibility of options for Air Grand Touring is in direct response to customer feedback requesting more choice for these available features,
Air Grand Touring retains its 516 miles on a single charge, still comes with superior interior materials, luxury features like massaging seats, and 819 horsepower with all-wheel drive
According to Lucid’s press release
Lucid’s price pressure
It is still being determined whether such pricing flexibility will allow Lucid to maintain its momentum. Lucid is also competing with brands that offer new electric crossovers, which many consumers prefer over sedans, according to McDonald’s. He believes Lucid would have had more success if it had launched a competitor to Tesla’s Model Y crossover rather than a sedan.
Brauer proposed that Lucid cut prices, even though this would impact the automaker’s profitability.
We’re seeing a pullback in car prices across the board,” said Brauer. “This means Lucid has to respond, and lower prices mean lower profits. Lucid is going up against Audi, BMW, Genesis, and Mercedes-Benz, plus Tesla, in the luxury EV space. These brands have more resources and much larger dealer networks to withstand an economic downturn
Brauer stated on Lucid to cut prices
