.jpg "The industry’s failure to cater to affordable electric options is puzzling.")
Lucid’s CEO, Peter Rawlinson, has ruled out producing a budget electric car, citing the low margins and competitive market. However, he sees potential for Lucid to license its technology to other carmakers, enabling them to produce more affordable EVs. Rawlinson believes that efficient EVs with a range of 180 miles (290km) or less would be sufficient for most consumers, and that fast charging infrastructure would reduce the need for longer ranges.
Rawlinson also notes that Lucid’s focus is on developing high-end products, which will enable the company to maintain its premium positioning. He mentions Porsche as an example of a successful premium automaker, and suggests that licensing Lucid’s technology to other OEMs could be a viable opportunity.
Some have questioned which carmakers would be interested in licensing Lucid’s budget EV technology, given the efforts of other brands to develop their own affordable EVs. Others, such as BYD and Leapmotor, are able to produce budget EVs at a lower cost due to their vertical integration and government subsidies.
Despite Lucid’s focus on high-end products, the company has sold 7412 units in 2024, a stronger result than 2023, but has had to cut prices to achieve this. Lucid has also received a $1.5 billion lifeline from a Saudi Arabian investment fund to ensure its cash flow.
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