Lucid Group Inc. (NASDAQ: LCID), the deeply troubled electric vehicle (EV) company, just got into more trouble. It is famous for its $80,000-plus car models, which go by the badge “Air.” However, those prices are heavy. Lucid finally cut prices to make its models more affordable. Investors revolted and drove shares down to $5. That is against a 52-week high of $17. Shares are down 63% in the past year. (These are the 13 biggest electric vehicle business failures in American history.)
[in-text-ad]
Lucid’s website posted a press release that said the company’s entry-level model, the Lucid Air Pure Rear-Wheel Drive, would have a new price of $77,400, about $5,000 below what it previously cost. Lucid has joined the EV market race to the bottom based on the manufacturer’s suggested retail price.
Tesla just cut prices again on its Model Y and Model 3. The Model 3 price cut was by about $1,500 and took the base price to $38,990 on one of its less expensive models. The price of a low-end Model Y dropped about $2,000 to $52,490. Tesla has already made several price reductions. Management at the company assumes that lower prices will mean a high market share. Tesla has healthy margins, so that it can afford the cuts. Lucid has what is commonly called “negative margins,” which means it loses money on every car it sells.
Other car companies, like Ford, continue to elbow their way into the EV market with price cuts. Similar to Tesla. Ford is profitable.
On another matter, many consumers may not know a Lucid from a Tesla. The Lucid brand is barely visible.
24/7 Wall St.Lucid continues to have outrageously low sales. It hopes to hit 10,000 units produced this year. Tesla produced 435,059 vehicles in the most recent quarter.
Lucid is on its way to oblivion as a standalone company. It lost $764 million last quarter on revenue of $151 million. Price cuts will not save it.
Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
