Lucid slashes prices on Air Sedans, adds new incentives to boost sales

Lucid has announced significant price reductions across its range of Air sedans. This is the second price cut in as many months, and the fourth price cut in the last year, signaling continued demand problems for the luxury electric vehicle (EV) maker.

Along with the price cuts, the automaker has also introduced two new incentives to help potential customers pull the trigger.

This latest round of price cuts means the entry-level Air Pure now starts at $96,800 in Canada, and $69,900 in the US, equating to about a 5% drop in Canada and a more substantial 9.7% drop in the US. The Air Touring and Air Grand Touring have also seen substantial price cuts approaching 10%, now starting at C$107,800 and C$150,800, or US$77,900 and US$109,900.

The top-of-the-line Air Sapphire has seen no change to its price, and it still starts at C$327,300 or US$249,000.

Here’s a breakdown of the new pricing structure.

ModelPrice in CanadaPrice in US
Air Pure$96,800$69,900
Air Touring$107,800$77,900
Air Grand Touring$150,800$109,900

Lucid didn’t just drop prices however, introducing two incentives on new purchases. Lucid is offering up to $1,000 towards the purchase of charging equipment, and also introducing a free scheduled maintenance program for two years or up to 40,000km/24,000 miles for new Lucid Air customers.

This aggressive pricing strategy comes at a time when Lucid is still struggling to sell its car more than two years after they were first introduced to the market. In 2023, the company produced 8,428 Air sedans, but delivered just 6,001 of those to new customers. This was well of their original targets of producing as many as 14,000 cars at the start of the year.

Despite this difference between cars produced and cars sold, leaving the company with over 5,000 in inventory since it started production in 2021, Lucid is expanding its manufacturing footprint. The company recently announced a massive 3 million square foot expansion of its first manufacturing facility, AMP-1, in Casa Grande, Arizona. Lucid has also recently opened its second facility, AMP-2, in Saudi Arabia, which currently reassembles cars built in Arizona, which are then disassembled for transport to Saudi Arabia.

It is also expanding its product lineup, planning to launch the Gravity SUV next year.

Lucid is scheduled to release its Q4 2023 and full year financial results next week on February 21, 2024. Before these price cuts, Lucid was already losing as much as $340,000 or more per vehicle produced.

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