Lucid Group, which offers the fastest-charging, longest-range electric vehicle on the market, announced the opening of its first service, delivery, and sales facility in the Netherlands as well as its third retail store in Europe. Dutch clients will receive thorough sales and service assistance from the 2,232 square metre luxury retail and service facility. In 2023, additional Lucid facilities are slated to launch in significant European areas.
It’s been a successful few weeks for Lucid. Its first vehicle, the Lucid Air, received the strict Euro NCAP crash test program's top grade of five stars. In a similar way to the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) in the United States, the European New Car Assessment Program, or Euro NCAP, which was established in 1996, performs crash tests on well-known models and assesses vehicle technologies. Several governments and automotive associations are among the program's participants. Its safety standards go above and beyond the minimal legal requirements, motivating automakers to step up their game and proactively incorporate new technologies for the benefit of customers.
Eyes set on China
The publicly traded electric vehicle manufacturer Lucid Motors is preparing to enter China as it begins hiring in the biggest EV market in the world. The California-based auto firm is hiring for a dozen roles in Shanghai. The positions include everything from software development to public policy, supply chain management, design, and marketing and sales. The kind of team Lucid is assembling signals that, at least in the immediate future, it is more likely to import vehicles into China rather than produce them there.
Lucid EV in Production
Lucid is not a one-hit wonder looking to show off their one talent, get paid, and disappear. Instead, with some of the best new cars in its arsenal, this new start-up is serious about waging war on rival electric vehicles. But the price of Lucid automobiles reduces the number of those who can purchase vehicles enormously. And more recently, Lucid is frantically trying to stop customer cancellations and is considering each cancellation a "failure." There has been a sharp decline in reservations for Lucid, which went from 37,000 to 34,000 in a single quarter. Lucid does point out that some decreases come from deliveries of cars. Elon Musk boldly stated that Lucid suffers enormous losses on every Lucid unit sold, in stark contrast to his own business, which makes money on every Tesla unit.
Price comparison with Tesla
Nothing has so far stopped Lucid from winning awards, having journalists sing their praises, and giving birth to a devoted group of discriminating new owners who are pleased to have a different type of premium EV once in a while. But having a strong business case requires more than that. Lucid loses money on every car it sells and incurred significant losses on the 2,000 vehicles it sold in the previous quarter. Compared to other automakers, Tesla is currently among the most lucrative, even surpassing Toyota.
The base price of the Tesla Model 3 with the lowest trim level is $46,990. The base price of the Lucid Air, before options, is almost twice as much. The Tesla Model S Plaid starts at $127,590 compared the Lucid Air Sapphire's $249,000 price tag. In fact, the same is true as you move up to their flagship models. Tesla was undoubtedly benefited by its move to dominate the (relatively) inexpensive EV market.
Lucid Gravity Comes next
It is possible that the impending Gravity SUV will profit from the current luxury SUV boom and bring in much more money for Lucid than a sedan could. However, the question of how much each Gravity will cost to produce and how much it will retail for then becomes relevant.
The best and easiest thing Lucid could possibly do is capitalise on the popularity and success of its Air sedans and introduce a smaller, more accessible vehicle for the general public. It does not even need to be the most affordable option available as long as it can meet production demands and compete favourably with popular products like the Model 3 Dual Motor Long Range or Performance. Maybe in the near future it will happen. Maybe it is the sequel to Gravity, which, if it is even vaguely similar to the Air, should be a huge success. What the future holds for the aspirational start-up can only be determined with time.