Not every Air sedan qualifies for the EV credit, though.
Lucid has responded to recent EV price cuts, with the California-based automaker announcing a $7,500 credit for the Air sedan. The credit applies to specific configurations of the Lucid Air Touring ($107,400) and Grand Touring ($138,000) sedans purchased by March 31, 2023. These are the mid-range trims positioned between the base Air Pure at $87,400 and the Air Sapphire that starts at a jaw-dropping $249,000.
Rival automakers have dropped EV prices recently, led by Tesla slashing prices across its range. Notably, Tesla's direct Air Sapphire rival, the Model S Plaid, became substantially cheaper last month, further widening the gap between it and the Sapphire.
Lucid's decision to set its EV credit at $7,500 exactly is hardly a coincidence, as that's the value of the maximum tax credit for EVs that meet all the new rules of the Inflation Reduction Act - although further guidance on some of these rules will only be announced next month. Lucid's sedans don't qualify for the maximum credit under the new rules because they exceed the $55,000 limit for sedans.
Still, the company's own $7,500 credit will take the price of the Air Touring down to $99,900, below the psychological six-figure mark but still more than the base Model S at $94,990. Without the benefit of the credit, the Air Sapphire is a startling $134,010 more expensive than the Model S Plaid.
Excluded from Lucid's credit are vehicles with the Stealth look, metal roof, or PurLuxe interior. The offer can't be combined with any other incentive, and customers must take delivery by April 30, 2023.
"We think our customers still deserve a $7,500 credit for choosing an EV," said Zak Edson, Lucid's vice president of sales and service. "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."
Just weeks ago, we reported on how Tesla's price cuts are going to hurt Lucid, and it hasn't taken a long time for the smaller company to respond. The latest credit follows a reduction of the Air Grand Touring price by $16k in December, although that saving did mean that previously standard features were omitted.
Now, we'll wait and see if Lucid's credit will significantly boost Air sales over the next month or two.
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