Benzinga - Lucid Group (NASDAQ:LCID) CEO Peter Rawlinson addressed price cuts within the EV segment on the company’s first-quarter earnings call on Monday.
What Happened: It’s not just a particular U.S. manufacturer but also German competitors who are discounting their products heavily, Rawlinson said.
Lucid would increase awareness of its products, including clarifying “misconceptions” on its pricing, to meet the challenge, he added.
“People believe it’s a $200,000 car. Actually, the entry-level price is $87,400. It’s probably conceivable that people think of it as a $300,000 car dollar count because it’s so amazing, but actually, it’s much more attainable, and we need to spread that word as well,” Rawlinson said.
“We just need to get more people behind the wheel,” the CEO added.
On Price Wars: “We’re seeing key competitors from Germany discounting their products very heavily that’s not just the U.S. manufacturer that you may be referencing,” Rawlinson said in response to a question about price cuts from “one of your large domestic competitors.”
“I think what we need to do is just amplify awareness [of] just how compelling our product is.”
Rawlinson said Lucid had “better range,” “better interior comfort,” and was “faster charging.”
“We’ve got a fundamentally superior driver engagement experience,” he added.
Lucid’s Air sedan has broken records with its 520-mile range on a single charge, the longest-ever EPA rating for an EV. Its most expensive Dream edition easily outstrips the competition by over 100 miles. Even Tesla’s highest range of 405 miles trails the base model of Lucid Air.
Why It Matters: EV giant Tesla Inc (NASDAQ:TSLA) started a price war in the EV market in January with a slew of price cuts across geographies. The move enabled better first-quarter deliveries for the EV giant and added pressure on rival EV makers, including German automakers Volkswagen AG (OTCPK: VWAGY) and BMW (Bayerische Motoren Werke AG) (OTCPK: BMWYY), to cut costs.
Lucid reported first-quarter sales of $149.43 million, missing a consensus estimate of $209.88 million. The California headquartered company produced 2,314 vehicles in the quarter and delivered 1,406 vehicles.
However, no vehicle by Lucid is eligible for full or part of the $7,500 tax credit given that its price tag is above the $55,000 limit put down by the Inflation Reduction Act for electric sedans.
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