Lucid joins the EV discounting fray with $7,500 ‘credits’ on some of its Air luxury sedans

Lucid Group said Thursday that buyers of certain versions of its pricey Air electric luxury sedan will be eligible for a $7,500 “credit.”

But that credit will be paid by Lucid, not the U.S. government.

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Lucid said that customers who buy Air Touring and Air Grand Touring models in “certain configurations” before March 31 will be eligible for the $7,500 discount.

The novel twist on discounting follows price cuts by EV rivals Tesla and Ford Motor. Both cut prices to make more of their EVs eligible for new federal tax credits, which are available on certain U.S.-built electric cars under $55,000 and electric trucks and SUVs priced under $80,000. (Tesla slightly increased some of its prices last week after the government clarified the credit rules.)

Analyst have expressed concerns that an EV price war could be brewing in the wake of the moves by Tesla and Ford.

The Lucid Air is built in Arizona, but at a starting price of $87,400 it’s far too expensive to qualify for the federal tax credits. The trims that Lucid is discounting are even pricier: The Air Touring starts at $107,400; the Air Grand Touring at $138,000.

“We think our customers still deserve a $7,500 credit for choosing an EV,” said Zak Edson, Lucid’s sales chief.

But Lucid’s true motivation might be more about clearing out inventory. As of Thursday morning, company’s website listed 15 Air Grand Tourings and seven Air Tourings available for immediate delivery.

Lucid will report its fourth-quarter and full-year results after the U.S. markets close on Feb. 22. The company’s stock is up more than 68% so far this year, giving it a market value of about $19.38 billion.