In response to price reductions from Tesla and Rivian, Lucid has opted to decrease prices for its sole vehicle, the Air. The starting price of the all-electric luxury sedan has been lowered from $78,900 to $71,400 (including a $1,500 delivery fee).
However, the $7,500 discount for the Air Pure isn’t the most significant one available, as Lucid is also reducing prices for several other models. The 2024 Air Touring now starts at $79,400, down $8,000 from its initial price of $87,400.
Notably, Lucid Air does not qualify for U.S. tax incentives under the Clean Vehicle Credit program, which has a maximum allowance of $55,000 for sedans.
Furthermore, the Grand Touring model now starts at $111,400, a result of this price reduction initiative. Autonews reports this as a $1,000 drop from its previously announced price.
While no discounts have been announced for other models in the range, such as the Air Sapphire starting at $250,500, all customers are being offered a $1,000 allowance towards the purchase of at-home charging accessories.
Lucid frames this pricing adjustment as a response to common barriers to purchasing EVs, following similar moves by Rivian and Tesla. Last month, Rivian announced a $3,100 price reduction for the base model R1T and R1S.
This price adjustment comes despite Rivian’s prior reluctance to engage in a price war initiated by Tesla in 2023. Tesla, on the other hand, recently announced $1,000 discounts for certain Model Ys after confirming that a mid-cycle refresh would not be introduced in 2024.
The magnitude of Lucid’s price cuts may indicate the challenging position it finds itself in. In 2023, the company failed to meet sales targets, which had already been revised downward during the year. Combined with general market apprehension about the EV sector, this caused Lucid’s share price to plummet to an all-time low.
However, there is still a glimmer of hope for the company. In December, it sold 675 vehicles in the U.S., marking a 33 percent increase over December 2022. Additionally, Lucid is poised to release the Gravity, a luxurious SUV, followed by a smaller crossover that will compete directly with the immensely popular Tesla Model Y.
“We remain optimistic about the future of EVs and firmly believe that increased adoption is crucial for mitigating the impact of climate change,” stated Peter Rawlinson, Lucid’s CEO.
“We have worked tirelessly to ensure that the Lucid Air lineup delivers unparalleled range and performance with less energy consumption. Today, we are pleased to pass on this benefit to our customers.”
