Lucid Motors isn’t about to let potential customers of the other American EV automakers have all the fun. Just because its EVs don’t qualify for federal tax credits under new terms in the Inflation Reduction Act does not mean customers looking to buy a new Lucid Air can’t get $7,500 off. That’s right – for a limited time, Lucid Motors is offering its own $7,500 credit for purchases of select models of the Air sedan.
It’s been well over a year since Lucid Motors began production of its Air sedan, and although the American Automaker warned the public it would be slashing its production targets for 2022 due to supply chain constraints, it did hit its (twice) revised production target for last year after a strong showing in Q4.
We got a chance to take the Air Grand Touring – Lucid’s second version of the sedan to reach customers – out for a long spin up the coast last year and were quite impressed. It was followed by the Touring version which began deliveries this past November and the Air Pure – Lucid’s most affordable version of the sedan.
Even at its most bare bones configuration, the Lucid Air Pure does not qualify for federal EV tax credits even though it is built in North America. It’s $87,400 price tag is well above the $55,000 limit for electric sedans laid out in the Inflation Reduction Act signed by President Biden last summer.
Competitors like Tesla on the other hand, have significantly dropped the prices of its EVs to qualify for tax credits… at least until the US Department of Treasury shares its battery guidance expected sometime in March. Furthermore, Tesla’s Model Y has been classified by the IRS as an SUV, bumping its MSRP threshold up to $80k and expanding its qualifications for tax credits. No such luck for the Lucid Air sedan.
Fellow automaker Ford has noted Tesla’s massive price cuts and responded by bolstering production of the Mustang Mach-E this year while also lowering its MSRP across all trims. Today, we’ve learned that Lucid has also taken note of these discounts to potential EV consumers and has essentially said, “Hey, our EVs don’t qualify for federal tax credits, but we’re gonna give you $7,500 off anyway.”
Well, at least through March.
Lucid announces its own $7,500 credit for EV purchases
According to news from Lucid Motors early this morning, it will offer its own $7,500 credit to buyers of select versions of the Air Grand Touring and Touring through March 31, 2023.
While the Lucid Air Touring and Grand Touring start at MSRPs of $107,400 and $138,000 respectively, an extra $7,500 should be welcomed by potential customers, especially since that’s up to $7,500 those customers do not qualify for from Uncle Sam due to the luxury sedan’s higher cost.
In a way, Lucid Motors is both joining the early stages of a potential EV price war, while also giving customers that were hoping for a federal EV tax credit what they would get if they were to purchase a qualifying model from a competitor. Lucid’s vice president of sales and service Zak Edson spoke:
We think our customers still deserve a $7,500 credit for choosing an EV. Lucid Air owners have told us how much they love this car, from the world-class driving experience to the elegant design and spacious interior. With this limited time offer, we hope to get Lucid Air into the hands of even more customers so they can experience the best for themselves.
In order to qualify for Lucid’s temporary EV credit, you must purchase an Air Grand Touring or Touring sedan no later than March, 31 and take delivery by April 30, 2023. The offer is not applicable to EVs with the Stealth look, PurLuxe interior, or a metal roof.
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