Lucid joins Tesla-led EV price war with discounts on some Air models

LUCID Group said on Thursday (Feb 9) that customers will get a US$7,500 credit on buying certain variants of the Air luxury electric car, revving up a price war started by market leader Tesla.

The battle has made it much more difficult for money-losing US startups such as Rivian Automotive and Lucid to grab market share at a time when high borrowing costs and inflation have pinched consumer wallets.

Ford has also slashed prices of its electric crossover Mustang Mach-E by as much as US$5,900 in response to Tesla’s price cuts.

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 Mar 31 this year.

The company’s cars are not eligible for a US$7,500 federal tax credit under the Inflation Reduction Act passed in August last year as the price cap for the benefit stands at US$55,000. Air Touring retails from US$107,400, while the Grand Touring model starts at US$138,000.

“We think our customers still deserve a US$7,500 credit for choosing an EV,” said Zak Edson, Lucid’s vice-president of Sales and Service.

SEE ALSO

Volvo steers clear of Ford and Tesla’s electric-car price war

Stellantis Asean head says electric cars must be cheap and good

China’s Li Auto launches electrified SUV to rival Tesla Model Y

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Lucid said in November that it had more than 34,000 orders in the third quarter, down by 3,000 from the second quarter, after it delivered about 1,400 vehicles and saw cancellations. REUTERS