Your move Lucid.
The electric car market, currently dominated by Tesla, is welcoming some fresh new competition in the form of the Lucid Air. The two companies have been warring for months despite the fact that the Lucid Air is yet to arrive on dealership floors. The Lucid Air's pricing was revealed this week, with the base model undercutting the Tesla Model S, which has clearly been a big blow for Tesla CEO Elon Musk's ego. In a possible move to preemptively counteract this announcement, Tesla slashed the pricing of the Model S but still ended up with a price slightly higher than that of the Lucid Air. Now in a seemingly childish move, Musk has announced further cuts to the Model S to get its price under Lucid's belt.
Sales of the Tesla Model S are down for 2020, which is partly due to the Model 3 and Model Y's market growth, and the fact that the Model S has barely seen any changes since 2016. This has forced Tesla to make some difficult decisions, mainly in the form of price cuts. The company made an overnight update to its design studio, lowering the price of its Model S Long Range Plus and Performance. With a $3,000 discount in play, the Long Range Plus costs $71,990 (down from $74,990) and the Performance costs $91,990 (down from $94,990). That's before Elon took to Twitter. Lucid yesterday announced that its entry-level sedan will cost $77,400. With a $7,500 tax credit, that brings the price down to $69,900.
Last night Musk took to Twitter to announce that the Model S will now retail for $69,420 which is a solid middle finger to the electric newcomer. That's a price cut of $2,570 on the Model S Long Range Plus, and a marginal $480 cheaper than Lucid's new offering. This follows a price cut of $2,000 on the Tesla Model 3 earlier this year. The entry-level Lucid Air is set to offer strong competition for the Model 3, matches the Model S's 400 mile plus range, and is promised to be lighter and faster. The Lucid Air's pricing places it alongside some serious competition from Germany's traditional luxury sedans, and clearly uncomfortably close to Musk's S. Let the war rage on.