© Reuters. FILE PHOTO: A Lucid Air electric vehicle is seen in Scottsdale, Arizona, U.S., on September 27, 2021. Picture taken on September 27, 2021. REUTERS/Hyunjoo Jin/File Photo
(Reuters) – Lucid Group said on Thursday customers will get a $7,500 credit when they buy certain variants of the Air luxury electric car, accelerating a price war started by market leader Tesla (NASDAQ:) Inc.
The battle has made it much harder for money-losing American startups like Rivian Automotive Inc and Lucid to gain market share at a time when high borrowing costs and inflation have squeezed consumers’ wallets. .
Ford has also slashed prices on its Mustang Mach-E electric crossover by as much as $5,900 in response to Tesla’s price cuts.
The Lucid credit will be available to customers beginning Thursday and applies to Air Series Touring and Grand Touring models purchased before March 31 of this year.
Company cars are not eligible for a $7,500 federal tax credit under the Inflation Reduction Act passed in August of last year, as the maximum price for the benefit is $55,000. Air Touring retails from $107,400, while the Grand Touring model starts at $138,000.
How EV prices compare to Tesla cars https://www.reuters.com/graphics/TESLA-ELECTRIC/STARTUPS/zdpxdrgrzpx/chart.png
“We believe our customers still deserve a $7,500 credit for choosing an EV,” said Zak Edson, Lucid’s vice president of sales and service.
Lucid said in November it had more than 34,000 orders in the third quarter, down 3,000 from the second quarter, after it delivered about 1,400 vehicles and saw cancellations.