Lucid will begin shipping electric cars in October with a range that exceeds Tesla’s

CASA GRANDE, Ariz., Sept. 28 (Reuters) – Lucid Group Inc (LCID.O) announced Tuesday that it will begin shipping its luxury Tesla range electric sedans in late October, challenging the market leader represents whose sales of premium models are stagnating.

The California-based startup began production of its long-delayed Lucid Air cars at its Arizona factory on Tuesday. Founded in 2007, the company received funding from Saudi Arabia’s Public Investment Fund in 2018 before going public in July via a shell company.

Lucid Group CEO Peter Rawlinson, who oversaw the development of Tesla’s Model S before leaving the company in 2012, faces similar tasks to Tesla’s early days, including overcoming manufacturing challenges and increasing the number of products Production.

“I think the big challenge for Lucid will be execution,” said Sam Abuelsamid, senior analyst at Guidehouse Insights. “I think they have a very good car. It’s very attractive.”

Lucid said Tuesday it received more than 13,000 reservations for Lucid Air models, which start at $ 77,400. The planned total production of the top class Lucid Air Dream Edition was increased to 520 vehicles. This car costs $ 169,000 and will be available in late October, followed by less expensive models: Grand Touring, Touring, and Air Pure.

One version of the Dream Edition has received an official government rating of 520 miles (837 km) range and offers more than 100 miles of additional range over its closest competitor, Tesla’s Model S, which is priced at $ 89,990.

“The proprietary EV technology that Lucid has developed will make it possible to travel more miles with less battery power,” said Rawlinson.

Lucid has not yet announced the battery capacity of the top-end version of Lucid Air, but it said the Lucid Air Grand Touring version has an official EPA rating of 516 miles of range on a 112 kWh battery, which is what yours an industry-leading efficiency of 4.6 miles per kilowatt hour.

Musk said in June that Tesla had canceled its plan to launch a Model S Plaid + with a target range of 520 miles, saying another version was “as good”.

Tesla’s combined sales of the Model S and Model X luxury models were just 1,890 in the second quarter of this year, up from 22,300 in the same period three years ago. Tesla does not publish any numbers for the two high-end models.

“The Model S is not fundamentally different from a Model S nine years ago,” said Abuelsamid. “In the premium market, customers are looking for the latest and greatest.”

“What Lucid will potentially have an advantage is that the Air feels like a luxury car, feels a lot more premium,” he said.

Tesla CEO Elon Musk cut the price of his Model S in October 2020, shortly after Lucid announced the pricing of its base model. “The gauntlet was thrown down! The prophecy will come true, ”he tweeted at the time.

Musk reiterated this month that “it’s hard to produce”.

“Production with positive cash flow is extremely tough,” he said, citing the automakers’ razor-thin margins.

Electric vehicle maker Rivian, backed by Amazon.com Inc (AMZN.O) and now preparing to go public, began producing electric pickups earlier this month. This move came before similar anticipated moves by Tesla, General Motors Co (GM.N), and Ford Motor Co (FN), all of which are preparing to introduce electric pickup trucks.

Reporting by Hyunjoo Jin in Casa Grande, Arizona. Editing by Matthew Lewis

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