Lucid CEO Peter Rawlinson Admits Price Cuts Are Working, Teases Gravity Debut

Lucid Group‘s (NASDAQ:LCID) strategic decision to slash prices for its Air luxury electric vehicle is yielding positive results, CEO Peter Rawlinson reportedly revealed during Monterey Car Week. 

What Happened: While specific figures weren’t disclosed, Rawlinson indicated that the price adjustments have led to increased sales and heightened product interest. 

"We reverted to our original pricing, which I think we got about right," Rawlinson said, Yahoo Finance reported. "We hit some really inflationary challenges particularly in batteries as we got into the summer of ‘22.”

“[So] we had to take a price action accordingly. But I’m delighted to say we’re back to our original pricing structure, and that’s been so well received by customers [and] the market alike,” he added.

The Lucid Air, despite the changes, remains positioned as a premium EV, with its base model starting at $82,400. The company also plans to introduce a more affordable variant, the Pure RWD, which is expected to start at $78,900.

See Also: Is Lucid Motors (LCID) Stock A Good Buy

Why It Matters: Rawlinson’s observations align with a broader trend in the EV market, including actions by notable player Tesla Inc (NASDAQ:TSLA), as automakers adjust prices in response to competitive pressures. 

Rawlinson had emphasized the intense price competition, not only from U.S. manufacturers but also from their German counterparts, prompting Lucid to enhance awareness about the value proposition of their products and address misconceptions about pricing.

Gravity Reveal: Turning to Lucid’s future prospects, the imminent unveiling of the Gravity SUV provides an opportunity to boost sales momentum. Rawlinson confirmed the company’s plans for a revealing launch event scheduled for November, expressing enthusiasm for the upcoming world premiere. 

Lucid is reportedly conducting testing on around 30 prototypes of the Gravity SUV. Although specific pricing details are yet undisclosed, expectations indicate a price point of approximately $100,000, with production slated for the latter half of 2024, as per the report.

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This report was generated with the help of AI tools and was edited by a Benzinga editor

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Photo by Gage Skidmore on Flickr