Electric car manufacturers Lucid Motors and Tesla Motors are in a back-and-forth pricing war. Tesla CEO Elon Musk has announced price drops for its Tesla Model S twice in a week. The price drops are in response to Lucid’s lowest-priced electric vehicle.
What is Lucid Motors?
Lucid Motors was founded in 2007 and formerly called Atieva. Previously, Lucid Motors CTO and CEO Peter Rawlinson served as the chief engineer at Tesla. He worked to develop the Tesla Model S.
In an April 2020 interview with MotorTrend, Rawlinson said that Lucid (then Atieva) asked him to come on board to design an electric car. He left Tesla for Lucid in 2012 with the goal of surpassing his last car — the Tesla Model S. He said, “I wanted to design the best electric car imaginable.”
Lucid Air versus Tesla Model S
Lucid Motors produces other electric vehicles at much higher price points. The company announced that its new Lucid Air sedan will be offered at $77,400. With a $7,500 tax credit, U.S. buyers will be able to purchase the Lucid Air for $69,900, according to TechCrunch.
Tesla CEO Elon Musk had just dropped the price of the Tesla Model S by $3,000, which gave it a price point of $71,990. Two days later, after Lucid’s pricing announcement on the Lucid Air, Musk decreased the price to $69,420.
Given the history between the two companies, it isn't a surprise that Musk hinted at the rivalry in his Oct. 14 tweet.
The gauntlet has been thrown down!— Elon Musk (@elonmusk) October 14, 2020
The prophecy will be fulfilled.
Model S price changes to $69,420 tonight!
Previously, Lucid’s leadership had only promised a price tag below $80,000. The base version of the Lucid Air model will have a 480 HP powertrain, single electric motor (though a dual-motor option will be available), and an estimated range of 406 miles.
In a September virtual reveal, Lucid presented the Air sedan as being ahead of others on the market. It has the potential for the fastest charging speed and the largest front trunk. It's claimed that the car can go from zero to 60 mph in 2.5 seconds. The extended-range capability will mean that the car can go up to 517 miles on a single charge.
The Tesla Model S is a dual-motor, all-wheel-drive vehicle that's priced slightly below Lucid’s counterpart. The Tesla Model S is expected to accelerate from zero to 60 mph in 3.7 seconds.
Lucid Motors stock
Lucid Motors isn't traded on the public market right now. The company secured $1 billion in funding from the Public Investment Fund of Saudi Arabia in 2018, according to MotorTrend.
Lucid Motors' stock IPO date
Currently, Lucid Motors hasn't provided an IPO date.
Other EV companies
What is Tesla's stock price today?
In pre-market trading at 8:34 a.m. ET on Oct. 15, Tesla stock was at $448.50.