In response to price reductions from Tesla and Rivian, Lucid has decided to lower prices for its sole vehicle, the Air. The starting price of the all-electric luxury sedan has dropped from $78,900 to $71,400 (all prices include a $1,500 delivery fee).
But that $7,500 discount for the Air Pure isn’t the biggest one on offer, because Lucid is lowering prices for a number of models. The 2024 Air Touring now starts at $79,400, which down $8,000 from its initial price of $87,400. The Lucid Air is not eligible for U.S. tax incentives under the Clean Vehicle Credit program, which tops out at $55,000 for sedans.
Finally, the Grand Touring model now starts at $111,400, as a result of this price cutting spree. Autonews reports that is a $1,000 drop from its previously announced price. No discounts have been announced for other models in the range, such as the Air Sapphire, which starts at $250,500. However, all customers are now being offered a $1,000 allowance towards the purchase of at-home charging accessories.
Read: Lucid’s 2024 Air Is An Electric Symphony With Added Luxury
While Lucid positions this pricing adjustment as a way that it is “addressing the reasons people most commonly cite as barriers to purchasing” EVs, it follows similar cuts at Rivian and Tesla. Last month, the former announced that it would be dropping the price of the base model R1T and R1S by $3,100.
Rivian made that move despite having previously resisted entering a price war that started with Tesla in 2023. Most recently, the latter announced $1,000 discounts for the certain Model Ys after clarifying that a mid-cycle refresh would not be introduced in 2024.
The size of Lucid’s price cuts may reflect the difficult position it is in. In 2023, the company missed sales targets that it had already lowered part way through the year. In combination with general anxiety about the EV market, that prompted Lucid’s share price to fall to an all-time low.
However, the light of optimism still flickers at the company, which sold 675 vehicles in the U.S. in December, a 33 percent increase over December 2022. In addition, the automaker will soon release the Gravity, a luxurious SUV, and that will be followed by a smaller crossover that will take the fight to the wildly popular Tesla Model Y.
“We are optimistic about the future of EVs and believe strongly that increased adoption is a necessary path towards reducing the impact of climate change,” said Peter Rawlinson, Lucid’s CEO. “We have worked tirelessly to enable the Lucid Air lineup to deliver unsurpassed range and performance from less energy, and so I’m delighted that today we are able to share this benefit with our customers.”
