American electric automaker Lucid Group currently offers significant discounts for its Air luxury EVs in North America amid the intensifying price war in the industry. However, Reuters noted that the price cuts will last for a limited time only.
Lucid Air’s pricing changes
Presented below are the price cuts Lucid Group offers to Air EV customers:
US
| Lucid Air | Discounted Price | Original Price | Price Cut |
| Air Pure RWD | – | $77,400 | – |
| Air Pure AWD | $74,900 | $82,400 | $7,500 |
| Air Touring | $87,500 | $95,000 | $7,500 |
| Grand Touring | $115,600 | $125,600 | $10,000 |
Canada
| Lucid Air | Discounted Price | Original Price | Price Cut |
| Air Pure RWD | – | $77,400 | – |
| Air Pure AWD | C$99,900 | C$109,900 | C$1,000 |
| Air Touring | C$119,000 | C$120,000 | C$1,000 |
| Grand Touring | C$156,500 | C$169,900 | C$13,400 |
In hindsight, Lucid had already implemented price cuts in August due to cash burn during production ramp-up in a challenging economy. Fortunately, Lucid received a liquidity boost from the Public Investment Fund over some of its peers who were experiencing a cash shortage.
Intensifying EV price war
The surging interest rates for electric vehicles have substantially weakened customer demand. In response, industry leader Tesla has continuously lowered prices for its models, including the Model S’ price reduction to $74,990. It is a crucial strategy for the American EV giant to defend its market position against new low-cost EV models from rivals.
Tesla’s move triggered other electric automakers to also launch major price cuts to make their offerings more affordable and stay competitive in the market.
According to Cox Automotive, electric automakers reduced average electric vehicle prices to $50,683 in September 2023 as they focused on boosting sales over margins.
Significance
Lucid’s decision to join the price war is significant for the company to compete in the highly competitive market dominated by the Musk-led automaker.
According to Benzinga, Lucid only delivered 1,457 units in Q3 2023. It indicated a notable disparity from the industry expectation of 2,118 units.
Such price cuts will also reverse the waning demand as they can encourage customers to make purchases despite the high interest rates for EV models.
As mentioned, Lucid’s price cuts will only be available for a limited time until November 30. Lucid is set to release its Q3 2023 report on Tuesday after the market closing. It would be interesting to see if these new price reductions will boost Lucid’s sales and delivery figures in the last quarter of the year.
