Lucid Group, Inc. LCID has announced steep price cuts across its trim levels as the electric vehicle industry is seeing tepid demand amid an uncertain economic environment.
What Happened: Lucid's cheapest model, the Lucid Air Pure, is now available for a starting price of $82,400, a reduction of $12,400 from the previous pricing of $92,900, Inside EVs reported.
The Lucid Air Touring’s starting price has also been slashed from $107,400 to $95,000 and the Grand Touring now has a starting price of $125,600, down from $138,000. The price reductions for these two models are $10,500.
The report also noted that Lucid will soon offer a cheaper Air Pure rear-wheel drive model, which would have a starting price of $77,400.
The pricing of the Lucid Air Sapphire tri-motor variant remained unchanged at $249,000.
Lucid reportedly said the price changes “further expand upon larger sales and marketing efforts” and are “intended to capitalize on the increased brand awareness to drive demand and deliveries.”
In another move, Lucid also said, through Aug. 31, exclusive lease and financing offers are available from Lucid Financial Services for 2023 Lucid Air Pure AWD and currently available Touring and Grand Touring models.
Check out the monthly lease payments, duration of financing by clicking here.
See Also: Is Lucid Motors (LCID) Stock A Good Buy
Why It's Important: The price cuts and lease options come at a time when Lucid is struggling to push out its pricier EVs. In mid-July, the company announced second-quarter production and deliveries that fell below expectations.
The company is also plagued by liquidity issues. It recently tapped the equity market and raised financing through a private placement with its Saudi promoters.
The price cut comes against a backdrop of preemptive price moves by EV makers to make their vehicles affordable to cash-strapped customers.
Market leader Tesla, Inc. TSLA has aggressively cut prices since the start of the year, risking margins.
More clarity on the rationale behind Lucid's move could be gleaned when the company announces its second-quarter results Monday, after the close.
Lucid closed Friday's session at $6.22, down 3.92%, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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