Lucid Group, Inc. LCID has taken down prices of its pricier electric vehicle sedan, but the price incentive is not available for all buyers, a report said on Friday.
What Happened: Lucid is offering a $7,500 discount on its Air sedan to customers who lease the vehicle through its Lucid Financial Services, Drive Tesla Canada reported, citing a company email to reservation holders.
The Newark, California-based EV maker reportedly said in the email that the price reduction will come in the form of a capital cost reduction, requiring reservation holders to pay lower monthly installments on their leased Air sedans. This would mean the company’s Lucid Air Grand Touring will now cost a buyer $131,500, still pricier than Tesla, Inc.’s TSLA Model S Plaid. With the reductions announced by the Elon Musk-led company earlier this month, the Plaid is priced at $114,990.
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Why It’s Important: EV industry leader Tesla has announced a spate of downward price adjustments since late last year. The biggest of these came on Jan. 12, when it announced price cuts in the range of 5.7%-13.5% across its models.
Following the move, analysts said it would trigger follow-up cuts by all players in the industry to position their vehicles at competitive pricing.
Lucid saw its reservations drop late last year, although the company managed to beat its lowered production guidance for the year. The company offered its employees an $18,000 discount on its vehicles in early December.
Lucid closed Friday’s session down 4.97% at $7.82, according to Benzinga Pro data.