That $20,000 luxurious Lucid EV you’ve been ready for will probably by no means hit the market. CEO Peter Rawlinson mentioned Lucid (LCID) has no plans to launch a $20K car. Nevertheless, it may play a task in bringing cheaper EVs to market.
After its third straight quarter of report 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 Ebook, Lucid bought 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 Avenue 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 is probably not climbing as quick as some had predicted.
Lucid’s CEO will not be shocked by some legacy automakers’ “lame efforts.” In keeping with Rawlinson, the corporate was established for a distinct purpose. 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 at the present time, “There’s no competitor inside 100 miles of that automotive,” in response to Rawlinson.
Lucid is concentrated on effectivity or enabling extra vary with fewer batteries. To advertise widespread adoption, Rawlinson mentioned we should hit the core problem: the price of batteries as a operate 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 are going to ultimately see a $20,000 Lucid EV hit the market? It’s nonetheless unlikely. 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 crucial 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 may have a chance to license its tech.
Enabling cheaper EVs
Concerning a $20K or $25K EV, the corporate’s superior tech will “allow that tomorrow,” Rawlinson mentioned, but it surely won’t 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 phase has “horrible low margins,” and that’s not the place the corporate is attempting 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 automobiles on its upcoming midsize platform, however they are going to nonetheless be round $50,000. Lucid’s midsize SUV, which is due out in 2026, can 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 change into a Tesla competitor, head-to-head.” Lucid’s CEO mentioned he believes the upcoming EV can be “massively higher than a Tesla Mannequin Y.” He added:
Due to our technological benefit, we must always be capable to make that automotive with its aggressive vary, however with much less batteries than anybody else.
In keeping with Rawlinson, doing so won’t solely save sources but in addition “enable a greater gross margin per car than anybody else.”
That’s the recreation plan, the “chess recreation” Lucid is taking part in. Though the media portrays Lucid as a Tesla competitor now, the corporate is definitely concentrating on Mercedes and Porsche. In a couple of years, it can 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 elevate, Lucid mentioned it has sufficient funding for “effectively into 2026,” proper in time for the midsize mannequin.
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