CEO Peter Rawlinson was frank about the automaker's challenges.
For various reasons, automakers of exclusively electric vehicles are having a hard time keeping the prices of their models stable for any significant period of time. Tesla just dramatically raised prices of all its models, with some costing well over $10,000 more than they did just weeks ago.
Before Tesla's price increase, Rivian came under fire for increasing prices of its R1T and R1S, affecting even current reservation holders. Rivian was then forced to backtrack, but none of this bodes well for those looking to buy an EV for the first time.
Now, Lucid has announced that rising costs will force it to raise prices for future EVs, although it is taking a more cautious approach following the Rivian debacle.
"There's an inevitability that we will have to look at the price points of models that are coming out in the future," said Lucid CEO Peter Rawlinson when speaking to Reuters. He cited skyrocketing prices of nickel following Russia's invasion of Ukraine. Rawlinson further went on to say that it would be "absolutely foolish" for him to say that Lucid will never raise its prices.
Crucially, Rawlinson said that existing reservation holders would not be blindsided. "What we want to do is honor and keep our commitments to existing reservation holders. I think that's what was ill-received in the market with Rivian."
Currently, Lucid's only model is the Air sedan which has a starting price of $77,400 for the Air Pure, going up to $139,000 for the Air Grand Touring.
Expected in 2023 is the Lucid Gravity, a large electric crossover which we already expected to start at more than the Air. Based on Rawlinson's latest comments, the Gravity may enter the market at a higher price point than initially anticipated.
Besides pricing concerns, Lucid was forced to reduce its production forecast for 2022 from an original 20,000 vehicles to between 12,000 and 14,000 as a result of supply chain and logistics challenges. While we hope Lucid can keep future price increases to a minimum, there's no guarantee of that happening. At least there is a bevy of new, far more affordable models from non-premium automakers that will make EV ownership a reality for many. For example, the Kia EV6 starts at just over $40,000 excluding incentives. Of course, there's always the chance that volatile market conditions could affect more affordable models too.