That fancy $20,000 Lucid EV you've been waiting for probably won't make it to market. CEO Peter Rawlinson said Lucid ( LCID ) has no plans to launch a $20K car. However, it could play a role in bringing cheaper EVs to market.
After a third straight quarter of record deliveries in Q3, Lucid is gaining momentum. The EV maker is now outselling its German luxury rivals in the US, including the Porsche Taycan and Mercedes EQS.
Lucid's Air even outsold the Tesla Model S in the third quarter. In accordance with Kelley Blue's bookLucid sold 1,944 Air models in Q3, up 33% from last year, while Tesla Model S sales fell 47% to 1,669.
The company's growing sales come despite several headlines saying EV sales are slowing or cooling.
Opened The Wall Street Journal In a recent Bold Names podcast, Rawlinson said there is a “false narrative” that EVs are on the decline. Sales are still rising, Rawlinson explains, but they may not be rising as fast as some had predicted.
Lucid's CEO isn't surprised by the automakers' “crippling efforts.” According to Rawlinson, the company was founded for a different reason. Lucid exists “to advance the state of the art of EVs,” a company executive said in a podcast.
Is Lucid launching a $20K EV?
In 2021, Lucid introduced the first EV with a range of more than 500 miles. To this day, “There is no competitor within 100 miles of that car,” according to Rawlinson.
Lucid focuses on efficiency or powering a larger range with fewer batteries. To encourage widespread adoption, Rawlinson said we must address a key issue: the cost of batteries as a function of their size.
To get there, Lucid had to start with a high-end premium product, the luxury Air sedan. The company's leader said Lucid exists to improve “the state of the electric car” with its advanced technology. In other words, it's about reducing costs while opening up driving range with smaller, more efficient technology.
Does this mean we'll finally see a $20,000 Lucid EV hit the market? It hasn't happened yet. According to Rawlinson, Lucid has no plans to build a $20K EV because “that market sucks.”
Lucid's boss pointed to Porsche, one of the most profitable automakers, saying, “It doesn't work in that industry.”
At the time, Rawlinson explained that Lucid “may still be commercially viable in the future.” He believes that's where Lucid can find an opportunity to license his technology.
It powers cheap EVs
As for a $20K or $25K EV, the company's advanced technology “will do that tomorrow,” Rawlinson said, but it won't be a Lucid car. When asked, “Are you going to build that $20,000 car?” A Lucid executive replied, “No, because that market is bad.”
The mass market segment is “low cost,” and that's not where the company is trying to compete.
Rawlinson said some OEMs already have a manufacturing network and can put such a vehicle in place.
The premium EV maker plans to introduce a few low-cost vehicles in its upcoming midsize segment, but they will still be around $50,000. Lucid's midsize SUV, due out in 2026, will be “priced in the $48 to $50,000 range,” Rawlinson confirmed.
That's the price range at which Lucid wants to do business, but licensing its technology will allow others to make affordable products.
Rawlinson said that when the new midsize model is introduced, “we're going head-to-head with Tesla.” Lucid's CEO said he believes the upcoming EV will be “much better than the Tesla Model Y.” He added:
Because of our technological advantage, we should be able to make that car as competitive as possible, but with the smallest batteries.
According to Rawlinson, doing so will not only save resources but will also “allow for a better total per vehicle than anyone else.”
That is the game plan, the “chess game” Lucid is playing. Although the media portrays Lucid as a rival to Tesla now, the company is actually targeting Mercedes and Porsche. In a few years, it will challenge Tesla head to head with its midsize SUV.
Before that, Lucid introduced its first electric SUV, the Gravity. It has already started taking orders for the $94,000 top model, which is scheduled to go into production later this year. An affordable $80,000 version is slated for late 2025.
After raising an additional $1.75 billion in a recent capital increase, Lucid said it has enough cash “through 2026,” in time for the mid-range model.
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