Lucid Group Offers Credit Amid Tesla-led Price War
Lucid Group Inc announced a new $7,500 credit for customers buying select variants of its Air luxury electric car, which makes an unofficial entry into what is being called a Tesla-led price war.
Smaller companies such as Rivian Automotive and Lucid are finding it difficult to grab market share in the electric vehicle industry due to recent price cuts by larger companies like Tesla and Ford.
Lucid's Vice President of Sales and Service, Zak Edson, stated that the credit was introduced to provide customers with a discount on EVs.
The credit applies to the Touring and Grand Touring models of the Air series purchased before March 31st of this year.
The company's cars are not eligible for a $7,500 federal tax credit under the Inflation Reduction Act due to the price cap, which stands at $55,000.
Shares of Lucid Motors and Rivian Automotive fell by 9% and 2% respectively, while shares of Tesla and Ford increased by 4.89% and 1% on Thursday.
Lucid Motors' shares have risen by 69% in 2023, surpassing rival Tesla's 60% increase.
The speculation of a takeover by Saudi Arabia's sovereign wealth fund has driven Lucid's recent rally.
Analysts are skeptical that Lucid Group's current stock rally will be sustainable in the future.
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