In Difficulty, Lucid Motors Will Copy Tesla To Get Out of Trouble

Lucid Motors has just announced the arrival of a much more affordable compact SUV, a direct competitor to the Tesla Model Y, to support its two very luxurious models already presented.

The electric car market is difficult, this is not news. If Tesla and a few Chinese brands shine (like BYD ), not everyone is in the same boat: even the most established manufacturers can lose their teeth, like Volkswagen or the sprawling Stellantis group (which notably owns Peugeot, Citroën and Fiat ).

The electric car market is even more complicated for small brands. Lucid, for example, has just had a very complicated 2023, relying solely on its large (and expensive) Air sedan. No matter: the brand has just presented the main lines of its next model, an SUV that is both smaller and more affordable, which wants to directly compete with the Tesla Model Y.

Lucid's Project Mid-Size

It was during the inauguration of the expansion of their factory in Arizona that Lucid revealed the first outlines of its new mid-size model. Electrek tells us the story, but don't expect much: while Peter Rawlinson, the CEO of the brand, assures that prototypes already exist, we still have no photos, no figures, no date …or even a name.

This is the Lucid 'Project Midsize', the 3rd #EV @LucidMotors expects to launch ... after the Gravity SUV, for which deliveries are to begin late this year.

Per CEO Peter Rawlinson, engineering prototypes exist already. It'll be Lucid's Model Y, if you like. No timing discussed. pic.twitter.com/D6MsGa99O2
— John 'legacy blue check' Voelcker (@johnvoelcker) January 24, 2024

We can simply estimate, if we refer to one of Peter Rawlinson's previous statements, that it should receive a medium-sized battery, to be able to travel around 250 miles on a single charge.

One thing is certain: this “Project mid-size” will compete head-on with the Tesla Model Y, which has just become the best-selling car in the world in 2023, with all energies combined. And Lucid wants to use the same method as Elon Musk to arrive at a model that is both accessible and competitive.

Tesla's Strategy Is Tested and Proven

What you need to know is that Lucid only sells one model: the large Air sedan. A very successful electric car, as evidenced by our test, but also very expensive: the most accessible version costs $77,400 dollars or around 71,500 euros. Another model will join it at the end of 2024, but will not be much cheaper, since it is an SUV that is as efficient as it is luxurious: the Gravity.

A sedan, then a very luxurious SUV before a third “mass” model: "Lucid therefore wants to reiterate what Tesla did with its Model S and Model X. In other words, use the profits and experience gleaned from the production of these two very luxurious models to be able to develop a third, more affordable model. It remains to be able to make a profit," notes Jean-Baptiste Passieux in a Frandroid article.

Let us also not forget that mass production can be very delicate: Tesla was not far from bankruptcy when the Model 3 began to roll off the line. Yet, Lucid Motors wants to remain optimistic: a Saudi fund has just injected capital and a second factory will see the light of day, where this famous “mid-size project” should be assembled. In addition, the partnership with Aston Martin could bring in some money.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebook, Linkedin, and Youtube. He has more than a decade of expertise in the automotive industry with a special interest in Tesla and electric vehicles.