Lucid joins the Tesla-led EV price war with discounts on some Air models

(Reuters) – Lucid Group said on Thursday that customers would receive a $7,500 credit to buy some variants of the Air luxury electric car, reigniting a price war sparked by market leader Tesla Inc.

The battle has made it harder for money-losing U.S. startups like Rivian Automotive Inc and Lucid to grab market share at a time when high borrowing costs and inflation have pinched consumers’ wallets.

Ford also slashed the price of its electric crossover Mustang Mach-E by $5,900 in response to Tesla’s price cuts.

Lucid’s credit will be available to customers starting Thursday and will apply to Air Series Touring and Grand Touring models purchased before March 31 this year.

Company cars are not eligible for a $7,500 federal tax credit under the Inflation Reduction Act passed in August of last year because the price cap for the benefit stands at $55,000. The Air Touring retails from $107,400, while the Grand Touring model starts at $138,000.

How EV prices stack up against Tesla cars https://www.reuters.com/graphics/TESLA-ELECTRIC/STARTUPS/zdpxdrgrzpx/chart.png

“We think our customers still deserve the $7,500 credit for choosing an EV,” said Jack Edson, Lucid’s vice president of sales and service.

Lucid said in November that it had more than 34,000 orders in the third quarter, down 3,000 from the second quarter, after it delivered about 1,400 vehicles and saw cancellations.

(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamanath)