Lucid's EV Discounting Campaign Offers $7,500 on Selected Air Luxury Sedans

In an announcement made Thursday, Lucid Group announced that customers who purchase some of its high-end Air electric luxury sedans will be eligible to receive a $7,500 credit as part of the sale.

This credit is being paid by Lucid, not by the U.S. government, as the U.S. government is not responsible for it.

In addition to the $7,500 discount, Lucid is offering a $2,500 bonus to customers who buy Air Touring or Grand Touring models before March 31 if the vehicle meets certain criteria.

EV rivals Tesla and Ford Motor both cut their prices a few months back, taking a novel twist on discounting. EVs from both companies were reduced in price to make them eligible for new federal tax credits, which are available on certain U.S.-built cars priced under $55,000, and electric trucks and SUVs priced under $80,000, which will assist customers in purchasing their electric cars. There was a slight increase in Tesla's prices last week after the government clarified the credit requirements for Tesla.

In the wake of Tesla's and Ford's moves, some analysts have expressed concern that a price war between EVs and internal combustion engines might be on the horizon.

At a starting price of $87,400, the Lucid Air is a machine made in Arizona, but at such a price it cannot be eligible for federal tax credits, since it is too expensive for most people. Aside from the Air Touring, Lucid is also offering a Grand Touring model, which starts at $137,400, and a premium trim that starts at $107,400.

As Zak Edson, Lucid's sales chief, explained to me, "our customers are still entitled to a $7,500 credit if they choose to purchase an electric vehicle.".

Nevertheless, Lucid's true motive might have more to do with clearing out stock rather than clearing out debt. There were fifteen Air Grand Tourings and seven Air Tourings listed on the company's website on Thursday morning as being available for immediate delivery.

As a result of the closing of the U.S. markets on February 22, Lucid will report its fourth-quarter and fiscal year results. During the first two months of this year, the company's stock is up over 68% so far, putting it at about $19.38 billion in market value.