In the United States, Lucid has adapted the ticker prices for some of the Air models to woo over some tempted Tesla customers who can enjoy considerable discounts. Lucid’s offer is only valid as long as the current supply lasts. The company needs to shift some stock, as it reported another significant loss of $700 million during the year’s second quarter.

In its latest financial report, Lucid Motors announced a loss of $724 million on revenue of $125 million. These results mirror those from the first quarter of 2023 and coincide with the production of 2 173 units and 1 404 deliveries. The situation is worsening for the luxury EV maker.

Robust backing

But although these losses are widening considerably compared to last year ($300 million during the first half year of 2022), Lucid soothes these alarming signals. It states that production, to reach 10 000 units by the end of the year, remains on track and expects no delay in unveiling its second model, the SUV Gravity.

The latter is scheduled for November, with production due in 2024. Also, Lucid is backed by robust funding from the Arabian Public Investment Fund (PIF), which raised $3 billion during the second quarter of 2023. Current liquidity secures the company’s lifeline into 2025.

Lucis recently secured a deal with Aston Martin to supply its electric driveline and propriety battery pack. With PIF on board as one of their shareholders, Aston Martin could be regarded as a twinned company, with Lucid lending a hand for the costly electrification switch of its ailing ‘sister’.

‘Turbulent times’

As always, sales help to clean up the balance. So, Lucid is giving away significant discounts on the AWD versions of the Air (Pure AWD, Touring, and Grand Touring) over in the USA, with a new base price starting at $82 400 (down from $87 400) while the Touring now starts at $95 000 (down from $107 400) and the Grand Touring at $ 125 600 (from $154 000). So, in the latter case, American customers save as much as $28 400.

These new prices align better with its main competitor, the Tesla Model S, which currently starts at $88 490 in its homeland. Tesla has been dropping its prices most significantly on its larger luxury models.

At the beginning of the year, the named Model S was at $104 990. During the latest investor call, Tesla CEO Elon Musk said he intends to revise the pricing “in these turbulent times,” referring to challenging macroeconomic conditions.

Lucid’s special offer extends to the 31^st of August. So, the measure isn’t structural. But as recession fears and inflation are eroding the market for luxury EVs in the United States, this won’t be the last adjustment.

No changes in Europe

At this point, pricing for the European Air versions has remained unchanged. Belgian tariffs are yet to be determined, but for the Netherlands, where the model came to market late last year, no changes have been made in the configurator. Prices start at €115 000 for the standard version Pure and climb to a staggering €222 000 for the Dream Edition.

Lucid also stated that the reductions apply to current stock without naming its size. It’s the first time the luxury EV automaker has lowered its catalog pricing. Though, it already released a reply to Tesla’s price war earlier this year, offering customers a credit of $7 500, matching the federal incentive for EVs. Lucid models are too expensive to be eligible for support under Joe Biden’s Inflation Reduction Act.