Lucid launches cheaper Air Pure electric sedan to boost demand

Luxury electric vehicle maker Lucid Group on Thursday launched a cheaper, rear-wheel-drive version of the Air sedan, the Lucid Air Pure, starting at $77,400, as it looks to stoke demand.

Higher interest rates on car loans have hit sales of electric vehicles over the past few quarters, while a price war unleashed by Tesla has hurt the ability of smaller EV makers such as Lucid and Rivian Automotive to grab market share.

The new Lucid model, however, is more expensive than Tesla’s Model S luxury sedan, which starts at about $75,000.

The cheaper electric sedan will offer a range of 410 miles on a full charge and will be available immediately, Lucid said. Its most expensive offering, Air Sapphire, which is also its fastest car, is priced at $249,000.

The Air Pure will retain Lucid’s DC fast charging capabilities and can gain up to 150 miles of charge in 12 minutes. Lucid says it will be “very well equipped,” with Apple CarPlay, a 34-inch curved Glass Cockpit display, heated front and rear seats and steering wheel, LED headlights, advanced driver assistance systems, and the Lucid UX digital environment that receives over-the-air updates.

The Air Pure RWD’s single motor is rated at 430 horsepower and 406 pound-feet of torque; it can accelerate from 0-to-60 mph in 4.4 seconds. That’s six-tenths of a second slower than the Lucid Air’s two-motor version.

The company, which is backed by Saudi Arabia’s Public Investment Fund, had cut prices of its Air luxury sedans by as much as $12,400 in August even as it burns cash and posts bigger losses in its race to keep up with Tesla.

Lucid had reported second-quarter revenue of $150.9 million. Analysts expect it to record $207.9 million in sales in the third quarter, according to LSEG data.

The EV maker opened its first overseas production factory last month in Saudi Arabia and the Saudi government has agreed to buy up to 100,000 Lucid vehicles over the next decade.

Shares of the Newark, California-based firm, which have dropped 19% so far this year, slipped 3.6% in early trading.