Last week, a ton of articles came out around the topic of rising prices and costs for the Lucid Air and other future models. Reuters reported that the CEO of Lucid Motors, Peter Rawlinson, told the publication that they are looking at the rising costs and that “it would be absolutely foolish of me to say we’re never going to raise our prices.”
Rising Costs Of Manufacturing the Lucid Air
Everything in general is costing more, not just gas prices – which is why so many Americans are eying electric cars in the past few weeks but also the cost of anything else you may want to buy. Some of those price increases have to do with the rise in gas prices. But some have to do with other material.
Lucid is citing the rising cost of nickel, Reuters wrote “soaring nickel prices after Russia invaded Ukraine” has forced Lucid Motors to look at their profit margins in manufacturing the car. Russia produced about 280,000 tons of nickel and is one of the leading countries that exports this item. Lucid said there is “huge inflationary pressures” to increase their prices.
Existing Reservations Locked In
It is unlikely that Lucid Motors will increase the prices of those who have yet to receive the car but already have reservations to purchase the car. To be clear, there are a few stages of the buying process with the Lucid Air right now. First you place a reservation with a refundable fee, then at some point in the future, Lucid will ask you if you to confirm that reservation where the reservation fee is no longer refundable, then you sign all the paperwork shortly before the car is delivered to acquire the car.
Peter Rawlinson said to Reuters “what we want to do is to honor and keep our commitments to existing reservation holders. I think that’s what was ill received in the market with Rivian.” So it does seem reservation holders are not going to see their prices go up.
Tesla also raised prices last week across the board, as did other EV makers.
The Lucid Owners forums has two different threads on the rising prices news and overall, they are happy they have reservations in place. But most are understanding of the cost increases will lead to price increases.
Here are some quotes from reservation holders:
This is exactly why I went ahead and reserved my pure. I think the price point of the pure is excellent and if you look at a Model S you have a lot more value in the Pure in my opinion. I wanted to lock in that price and maintain the option to order. The more I look at cars the more convinced I am that Lucid will be a good choice for me.
That’s reassuring, $9,000 for Dream Drive Pro that has no videos proving its existence is already high enough. I had a hard time convincing myself $10,000 (now $12,000) was worth it.
I would put a second deposit down for a Pure for my wife if they made a blue car. She loved our test drive and made comments that led me to believe she might like to replace her SUV with one. Her gripe is the colors are boring. Now, with grey taking so long and problems with silver, I’m not sure LucI’d could handle adding blue to the mix. Surprisingly, she does not like the red. That shocked me a bit, but she was able to see it at Torrance. Normally, red is her favorite color.
I have been saying that I fully expect a price increase by Lucid and have told friends if they are on the fence to at least Lock in the current pricing with a reservation. They can always cancel if they decide not to pull the trigger and get the deposit back.