Customers will get a $7,500 (about R133,421) credit on certain variants of the Air luxury electric car, revving up a price war started by market leader Tesla, Lucid said on Thursday.
The battle has made it much more difficult for money-losing US start-ups such as Rivian and Lucid to grab market share at a time when high borrowing costs and inflation have pinched consumer wallets.
Ford has also slashed prices of its electric crossover Mustang Mach-E by as much as $5,900 (about R105,000) in response to Tesla's price cuts.
Lucid's credit will be available to customers from Thursday and applies to the Touring and Grand Touring models of the Air series purchased before March 31 this year.
The company's cars are not eligible for a $7,500 (about R133,474) federal tax credit under the Inflation Reduction Act passed in August last year as the price cap for the benefit stands at $55,000 (about R978,862). Air Touring retails from $107,400 (about R1,911,451), while the Grand Touring model starts at $138,000 (about R2,456,055).
"We think our customers still deserve a $7,500 credit for choosing an EV," said Zak Edson, Lucid's vice-president of sales and service.
The company said in November that it had more than 34,000 orders in the third quarter, down by 3,000 from the second quarter, after it delivered about 1,400 vehicles and saw cancellations.
Lucid joins EV price war with discounts on Air models
Image: Lucid
Customers will get a $7,500 (about R133,421) credit on certain variants of the Air luxury electric car, revving up a price war started by market leader Tesla, Lucid said on Thursday.
The battle has made it much more difficult for money-losing US start-ups such as Rivian and Lucid to grab market share at a time when high borrowing costs and inflation have pinched consumer wallets.
Ford has also slashed prices of its electric crossover Mustang Mach-E by as much as $5,900 (about R105,000) in response to Tesla's price cuts.
Lucid's credit will be available to customers from Thursday and applies to the Touring and Grand Touring models of the Air series purchased before March 31 this year.
The company's cars are not eligible for a $7,500 (about R133,474) federal tax credit under the Inflation Reduction Act passed in August last year as the price cap for the benefit stands at $55,000 (about R978,862). Air Touring retails from $107,400 (about R1,911,451), while the Grand Touring model starts at $138,000 (about R2,456,055).
"We think our customers still deserve a $7,500 credit for choosing an EV," said Zak Edson, Lucid's vice-president of sales and service.
The company said in November that it had more than 34,000 orders in the third quarter, down by 3,000 from the second quarter, after it delivered about 1,400 vehicles and saw cancellations.
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