Tesla Rival Lucid Said To Be Eyeing Price Hikes For Future Models As Inflation Bites

Lucid Group Inc LCID is exploring price hikes for its future car models, Reuters reported on Thursday, citing the premium electric automaker's chief executive officer, Peter Rawlinson.

What Happened: Rawlinson linked the potential move to huge inflationary pressures caused by soaring nickel prices after Russia invaded Ukraine.

The Tesla Inc TSLA rival will, however, continue to honor prices for existing reservation holders.  

Rawlinson, a former chief engineer at Tesla until 2013, said he did not want a fiasco similar to Rivian Automotive Inc RIVN, which earlier this month rolled back price hikes after facing immense customer backlash online.

See Also: Rivian Missed 2021 Production Targets And Is Now Reportedly Bumping Up Prices

Lucid earlier this month significantly lowered production targets for 2022, citing extraordinary supply chain and logistics challenges.

Why It Matters: Tesla, the biggest EV maker, on Tuesday raised prices for some of its cars for a second time within a week in the U.S. and China — two of its top markets. 

Its CEO, Elon Musk,  had tweeted that the company was facing significant inflationary pressures linked to raw materials and logistics. 

Several EV makers, including BYD Co BYDDY, have already raised prices or exploring further hikes due to similar circumstances. China’s Xpeng Inc XPEV is rumored to roll out price hikes from Monday.

Price Action: Lucid stock closed 4.4% higher at $24.7 a share on Thursday.

Photo courtesy: Lucid