Lucid Motors is making a crucial play for its future by opening preorders for its much-anticipated electric SUV, the Gravity. This move comes as the company grapples with lagging sales of its Air sedan and seeks to tap into the growing demand for SUVs in the North American market.
While Lucid has managed to increase Air sedan sales in recent quarters through price cuts and the introduction of a more affordable trim level, the company remains far from reaching the ambitious sales targets it projected during its 2021 public debut. This shortfall has forced Lucid to repeatedly turn to its majority owner, Saudi Arabia’s Public Investment Fund, for additional financial support, highlighting the urgency for the Gravity to become a commercial success.
The Gravity, with its SUV form factor, holds the potential to significantly expand Lucid’s customer base, particularly in North America, where SUVs are highly popular. The company is promoting the Gravity’s impressive specifications, including a range of over 440 miles on a single charge and a powerful dual-motor setup delivering 828 horsepower. Additionally, the Gravity offers enhanced practicality compared to the Air sedan, coming standard with two rows of seating and the option to configure it with three rows.
However, the Gravity’s pricing strategy could pose a challenge to achieving widespread market adoption. The initial “Grand Touring” trim, available for pre-order now, carries a starting price of $94,900, placing it in the premium segment of electric SUVs. The more accessible “Touring” version, priced at $79,900, won’t hit the market until late 2025, potentially limiting Lucid’s ability to attract budget-conscious buyers in the near term. Furthermore, car reviewer Kyle Conner has pointed out that the price of the Grand Touring trim can quickly escalate when customers select additional options through Lucid’s online configurator.
The high price point of the Gravity also carries implications for Lucid’s eligibility for government incentives designed to promote electric vehicle adoption. As it stands, the Gravity’s price exceeds the threshold to qualify for the point-of-sale federal EV tax credit in the United States, a significant financial incentive for buyers. While the Gravity could potentially qualify for a $7,500 tax credit that can be applied to lease agreements, the future of this particular tax credit remains uncertain under the incoming administration of President-elect Donald Trump.
The launch of the Gravity represents a pivotal moment for Lucid Motors. Its success could determine whether the company establishes itself as a major player in the rapidly evolving electric vehicle market or faces further financial strain. While the Gravity boasts compelling features and performance capabilities, its high price tag could limit its appeal, particularly in the short term. Lucid will need to carefully navigate its pricing strategy, production ramp-up, and marketing efforts to ensure that the Gravity resonates with a wide enough audience to propel the company towards a more sustainable future.