Lucid is to apply up to €11,300 in price cuts on certain versions of the Lucid Air. The brand’s objective is simple: to get rid of the stock of vehicles already produced, but which have not found takers.
When you are a young American brand of high-end electric cars, it is difficult to have Tesla and its Model S as your main competitor. Especially when the competitor takes all the light and can rain or shine on prices. Lucid may offer a large seductive electric sedan, but the brand still lacks notoriety.
In an August 7, 2023 press release, regarding second quarter financial results, Lucid boss Peter Rawlinson himself acknowledged: We are on track to achieve our production target of over 10,000 vehicles in 2023, but we recognize that we still have work to do to grow our customer base. »
Surplus production, unthinkable for high-end
As with Rivian and other new electric car players, production volumes were initially a primary concern for the Lucid Air. The manufacturer has regularly had to revise its production targets downwards. However, the boss of Lucid considers that the supply chain is now out of the Covid era and that there is no longer any limitation due to production capacity.
From now on, it is the sale which begins to concern the management teams, but also the investors. Already in May, nearly 4,000 Lucid Air had been produced and not delivered. Although some of these sedans serve as demonstration vehicles and for the press, the brand seems to have a large stock of new vehicles on its hands. Considering that the vehicles are worth an average of €90,000 each, this becomes a particularly expensive stock.
Since May, the situation has hardly changed regarding deliveries, so the manufacturer must try another approach.
Lucid lowers prices to lock in stock
What better than sales to sell a troublesome stock? Lucid decided to apply a further price drop during an event called “Pure Summer Event”:
- – €4,500 on the Lucid Air Pure versions with a US price of €75,000 (excluding taxes),
- – €11,300 on the more powerful Touring and Grand Touring versions, with prices now between €86,500 and €114,400 (excl. VAT).
The discount period must apply until August 31, 2023. But, above all, all this is only valid while stocks last. Lucid did not release the number of vehicles affected.
This stock promotion is apparently not valid in Europe. Prices for the Lucid Air on European configurators did not drop following the announcement. It must be said that despite several points of sale open in Europe, Lucid only registered 71 models in the first half of 2023.
One question remains unanswered: what has become of the model’s 28,000 international bookings?
Unwavering confidence in the future
Sales of in-stock models should make some room to accommodate the production of two new versions of the upcoming Lucid Air. In mid-September, the first Lucid Air Sapphires should leave the factory. This is the most powerful version with 1,234 hp and the most top-of-the-range with a price of €227,000 excluding tax. Finally, it is more likely the Air Pure propulsion version which should also animate the production lines a bit, hoping that they will not only supply the stock.
Even if the financial results for the second quarter are not really those hoped for, the brand is not financially threatened. His boss is still relying heavily on the launch of the Gravity SUV to expand the customer base and further ensure Lucid’s sustainability for years to come.
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