Lucid Responds To Tesla With $7,500 Price Cut

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Lucid has found a clever way around its cars no longer being eligible for the $7,500 tax credit.

Lucid has responded to Tesla flexing its profit margins on the rest of the EV segment with a $7,500 discount on the Lucid Air. This comes in handy, as from this year the Air is no longer eligible for the $7,500 EV tax credit as part of the Inflation Reduction Act thanks to its MSRP being over $55K.

While Tesla's deals knock significant sums off the price of every car sold, Lucid's is not so simple.

Lease It or Lump It
The catch with Lucid's deal is that it only applies to cars leased through its own financial services division. An email sent out to reservation holders encourages them to "Save $7500 immediately. Accelerate instantaneously," and says that "Starting now, customers who lease any Lucid Air through Lucid Financial Services will receive an automatic $7,500 savings in the form of a capital cost reduction. By taking advantage of this savings, customers get a lower monthly payment for their new Lucid Air."

Related Story: Lucid Air GT Performance Tested In California Canyons

How It All Works
Zach Butler at The Fast Lane Car says the $7,500 discount offered to lease customers comes from the Commercial Clean Vehicle Credit. This tax credit allows businesses to claim $7,500 for every EV in their fleet. As any leased Lucids technically belong to the fleet of Lucid Financial Services and Bank of America, they can claim the credit and pass on the savings to the consumer.

The deal operates as if the lessee has made a $7,500 payment up front, and lowers their subsequent lease payments. Lucid's lease customers have the option to buy their vehicles once the lease period is over.

Related Story: Lucid Stock Pops With Latest Buy Rating

Images by Lucid Motors licensed by CC BY 4.0.

James Walker is an Automotive Journalist at Torque News focusing on Lucid Motors. If it's got wheels he's interested, and he's looking forward to seeing what kind of cars the EV revolution brings us. Whether it's fast, slow, new, or old, James wants to have a look around it and share it in print and on video, ideally with some twisty roads involved. You can connect with James on Twitter, Instagram, and LinkedIn.