By Akash Sriram; Edited by News Gate Team
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REUTERS/Hyunjoo Jin/File Photo
Reuters, February 9 – Customers would receive a $7,500 credit when purchasing specific Air luxury electric car variants, according to Lucid Group (LCID.O), igniting a price war launched by market leader Tesla Inc. (TSLA.O).
As a result of the competition, it is now much more challenging for U.S. startups that are losing money, like Rivian Automotive Inc (RIVN.O) and Lucid, to gain market share at a time when consumer wallets are being squeezed by high borrowing prices and inflation.
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In response to Tesla’s pricing reductions, Ford (F.N) has also reduced the cost of its electric crossover Mustang Mach-E by as much as $5,900.
Customers who purchase the Touring and Grand Touring variants of the Air series before March 31 of this year will be eligible for Lucid’s credit starting on Thursday.
The Inflation Reduction Act, passed in August of last year, has a $7,500 federal tax credit, but the benefit’s $55,000 price maximum excludes the company’s vehicles from it. Retail prices for Air Touring begin at $107,400, while those for Grand Touring begin at $138,000.
Vice President of Sales and Service at Lucid, Zak Edson, stated that “we still believe that our clients should receive a $7,500 credit for selecting an EV.”
After delivering around 1,400 vehicles and experiencing cancellations, Lucid reported in November that it had more over 34,000 orders in the third quarter, a decrease of 3,000 from the second quarter.
By Akash Sriram; Edited by News Gate Team
