The Lucid Air is a hell of a thing. It offers massive range, incredible style and performance for an admittedly princely price. Only, now that price is going up by a lot, according to an announcement made by CEO Peter Rawlinson during an earnings call last week.
How much is a lot? The base Air (aka Pure) goes from $77,400 to $87,400, while the Air Touring goes from $95,000 to $107,400. The biggest jump comes for the Grand Touring model, which jumps from $139,000 to $154,000. However, the Grand Touring Performance model won't get its $179,000 price adjusted at all.
If you're thinking that people are going to lose their minds like they did when Rivian suddenly bumped its prices, you might be wrong. These price increases take effect on June 1, so there's still time to order before that point. Further, those folks who currently hold reservations won't be expected to pay the higher prices when it comes time to turn their reservations into orders.
So, why is Lucid boosting its prices so soon after entering production on the air? Rising costs, of course. The ongoing global supply chain issues (which include the semiconductor shortage), coupled with COVID-related factory closures in China, mean that Lucid's costs are going up. It makes sense that the company would pass those costs on to consumers.
Beyond the supply issues, Lucid has been struggling a bit to get cars out to customers. It only managed to deliver 360 vehicles in Q1 of this year, which is not great. It will be interesting to see how these price increases affect the brand's sales and whether it can get past its supply issues to start building cars at scale.