Lucid Motors Follows Tesla Price Cuts, Offers Credits on Air Sedan

Lucid Air Touring. Photo: Lucid Motors

Lucid Group announced plans on Thursday to offer a $7,500 credit for purchasing some vehicle variants of its flagship Air electric sedan, according to a report from Reuters.

The credit is effective beginning on Thursday, and it applies to all Lucid Air Tour and Grand Touring purchases between now and March 31.

Despite the discount, Lucid’s Air EVs aren’t eligible for the $7,500 federal tax credit on zero-tailpipe-emission vehicles, due to the price in the sedan category being maxed out at $55,000. The Lucid Air Touring starts at $107,400, and the Grand Touring at $138,000.

The news comes after Tesla’s price cuts last month put pressure on startup electric vehicle (EV) companies and legacy automakers alike, effectively causing an industrywide price war.

Currently, startups like Rivian and Lucid haven’t yet become profitable, making it hard to lower prices. Meanwhile, inflation and high borrowing costs have made it harder for consumers to purchase new vehicles, mitigating the money-losing automakers’ ability to carve out market share.

Ford cut prices on the Mustang Mach-E by up to $5,900 after Tesla’s price cuts, though it did not apply any discounts to its newly released F-150 Lightning electric pickups.

A few weeks ago, a key Volkswagen executive confirmed that the automaker wouldn’t cut its prices.

Chinese automaker NIO warned against automakers cutting EV prices, saying that it’s “not an ideal solution” for most companies.