That $20,000 luxurious Lucid EV you’ve been ready for will possible by no means hit the market. CEO Peter Rawlinson mentioned Lucid (LCID) has no plans to launch a $20K car. Nevertheless, it might play a job in bringing cheaper EVs to market.
After its third straight quarter of file deliveries in Q3, Lucid is gaining traction. The EV maker is now outselling its German luxurious rivals within the US, together with the Porsche Taycan and Mercedes EQS.
Lucid’s Air even outsold the Tesla Mannequin S within the third quarter. In keeping with Kelley Blue Guide, Lucid offered 1,944 Air fashions in Q3, up 33% from final yr, whereas Tesla Mannequin S gross sales slipped 47% to 1,669.
The corporate’s rising gross sales come regardless of many media headlines claiming that EV gross sales are slowing or cooling.
On The Wall Road Journal’s current Daring Names podcast, Rawlinson mentioned there’s a “false narrative” that EVs are in decline. Gross sales are nonetheless up, Rawlinson defined, however they might not be climbing as quick as some had predicted.
Lucid’s CEO is just not stunned by some legacy automakers’ “lame efforts.” In keeping with Rawlinson, the corporate was established for a special cause. Lucid exists “to advance the state-of-the-art of EVs,” the corporate’s CEO mentioned on the podcast.
Is Lucid launching a $20K EV?
In 2021, Lucid launched the primary EV with over 500 miles vary. To today, “There’s no competitor inside 100 miles of that automotive,” in accordance with Rawlinson.
Lucid is targeted on effectivity or enabling extra vary with fewer batteries. To advertise widespread adoption, Rawlinson mentioned we should hit the core subject: the price of batteries as a perform of their dimension.
To get there, Lucid needed to begin with a high-end premium product, its luxurious Air sedan. The corporate’s chief mentioned Lucid exists to advance “the state of the electrical automotive” with its superior tech. In different phrases, it’s about driving down prices whereas unlocking extra driving vary with smaller, extra environment friendly know-how.
So does this imply we’ll ultimately see a $20,000 Lucid EV hit the market? It’s nonetheless not going. In keeping with Rawlinson, Lucid has no plans to construct a $20K EV as a result of “that market sucks.”
Lucid’s CEO pointed to Porsche, one of the vital worthwhile legacy automakers, saying, “It doesn’t function in that sphere.”
In the meantime, Rawlinson defined that Lucid is “commercially viable sooner or later.” He believes that’s the place Lucid might have a possibility to license its tech.
Enabling cheaper EVs
Relating to a $20K or $25K EV, the corporate’s superior tech will “allow that tomorrow,” Rawlinson mentioned, but it surely is not going to be a Lucid car. When requested, “Are you going to construct that $20,000 car?” Lucid’s CEO responded, “No, as a result of that market sucks.”
The mass market section has “horrible low margins,” and that’s not the place the corporate is making an attempt to compete.
Rawlinson mentioned different OEMs have already got the manufacturing community and will put such a car in place.
The premium EV maker plans to launch a number of lower-cost autos on its upcoming midsize platform, however they’ll nonetheless be round $50,000. Lucid’s midsize SUV, which is due out in 2026, shall be “priced round 48 to $50,000,” Rawlinson confirmed.
That’s the value vary Lucid needs to do enterprise in, however licensing its tech will allow others to make extra reasonably priced merchandise.
Rawlinson mentioned when the brand new midsize mannequin mannequin launches, “we turn out to be a Tesla competitor, head-to-head.” Lucid’s CEO mentioned he believes the upcoming EV shall be “massively higher than a Tesla Mannequin Y.” He added:
Due to our technological benefit, we must always have the ability to make that automotive with its aggressive vary, however with much less batteries than anybody else.
In keeping with Rawlinson, doing so is not going to solely save sources but in addition “permit a greater gross margin per car than anybody else.”
That’s the sport plan, the “chess sport” Lucid is enjoying. Though the media portrays Lucid as a Tesla competitor now, the corporate is definitely focusing on Mercedes and Porsche. In a couple of years, it would problem Tesla head-to-head with its midsize SUV.
Earlier than that, Lucid is launching its first electrical SUV, the Gravity. It has already begun taking orders for the higher-end $94,000 mannequin, which is scheduled to enter manufacturing later this yr. A extra reasonably priced $80,000 model is deliberate for late 2025.
After securing one other $1.75 billion by a current capital increase, Lucid mentioned it has sufficient funding for “effectively into 2026,” proper in time for the midsize mannequin.
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