- Lucid Motors is the latest manufacturer to join the EV price war, bringing the starting price of the Lucid Air down to $82,400.
- The drop follows Tesla’s price drops across its range, including on the Model S, the Lucid Air’s close competitor.
- The news means the Air now comes in cheaper than the Model S in the USA.
Lucid Motors follows other manufacturers in dropping prices
Lucid have revealed price drops across its various Lucid Air configurations, with these reduced prices in place for ‘as long as stock lasts’. The cuts, only applicable to its local USA market for now, include a $5k reduction on the cheapest Lucid Air Pure, bringing the price down from $87,400 to $82,400.
The most notable consequence of this price drop is that the Air now undercuts the cheapest Model S, which starts at $88,490. Additionally, Lucid plans to bring an even cheaper rear-wheel-drive, single motor configuration of the Air Pure to market next month, with a starting price of around $78,900.
Will other manufacturers respond?
Tesla only reduced prices of the Model S recently, although CEO Elon Musk did hint at further reductions to claw back market share. This move by Lucid could cause Tesla to respond with further cuts.
The biggest discount comes on the Touring and Grand Touring models. A $12,000 drop in price brings these two models down to $95,000 and $125,600 respectively. Despite these drops, the $125,600 Grand Touring is still considerably more expensive than the $108,490 Tesla Model S Plaid, which offers similar supercar-beating levels of performance.
As a newcomer to the EV scene, this is the first time the company has cut the prices of its electric cars. It previously upped the prices of some of its Air models in 2022, owing it to supply chain disruptions which caused it to struggle to turn a profit. This move looks as though Lucid is following Tesla’s strategy, sacrificing profit for increased market share.
Many of the longstanding OEMs have refused to budge on EV pricing so far, although Ford is an outlier in that respect. It recently dropped the price of its F-150 Lightning by up to $10,000.