EV startup Lucid targets classic luxury
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Final Assembly
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Diess chose VW over CEO job at Tesla
      The special-edition GT-R Nismo goes on sale in North America this fall. It does not come with a Happy Meal.
      Nissan's 600-hp hamburger helper
      Prince Philip died April 9.
      Philip's custom Land Rover hearse gets called into duty
      Still no auto show, so Detroit tries car crawl
    • Shanghai Tesla protest
      Tesla apologizes as anxiety grows after driver protest
      Jaguar at Shanghai show.jpg
      Jaguar Land Rover expects luxury sales to grow in 2021
      Hyundai logo
      Hyundai Group to launch EVs every year starting in 2022
      The Ford Mustang Mach-E assembled at Ford's joint venture with Changan Automobile Co.
      Ford starts preorders for locally built Mustang Mach-E
    • Food is becoming a main dish on the AV menu
      Udelv CEO offers a historical perspective on high-tech goods delivery
      Q&A with BrightDrop CEO Travis Katz
      Automakers optimize manufacturing, customize products through digitization
    • Volvo Didi test car 2.jpg
      Volvo will provide XC90s for Didi's self-driving test fleet
      Hyundai logo
      Hyundai Motor Group names chief for new mobility division
      Tesla Autopilot web.jpg
      Tesla, ex-engineer settle lawsuit over Autopilot source code
      Cruise self-driving vehicle
      Cruise raises $2.75 billion from Walmart, others
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Lithia goes big on Michigan market
      Mercedes bypasses crossover route, enters EVs sedan-first
      Mercedes' new U.S chief: EVs won't kill profits
      Get even more Automotive News with our new app
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Citroen
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Opel
      • Peugeot
      • Ram
      • Vauxhall
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Mercedes EQS mirrors web.jpg
      For the EQS, Mercedes likes what it sees in the mirror
      Mach-E
      For Ford, 3rd-party charging network must improve to reap Mustang Mach-E potential
      VW logo with reflection
      VW lied to sell diesels; now it lied to sell EVs
      265725_XC90_Inscription_in_Birch_Light.jpg
      Volvo targets top talent in U.S., China with generous parental leave policy
    • EVs Arrived EVentually
      EVs Came, EVentually
      In case of supply chain woes, break glass
      Quick! The Biden phone
      VW's Joke Is On You
      Joke Is On You
      view gallery
      4 photos
      Leo Michael Cartoons - Q2 2021
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • April 20, 2021 | The future of working may be hybrid
      April 13, 2021 | GM shows it’s serious about electric
      April 6, 2021 | For Volkswagen, authenticity is the only path forward
      March 30, 2021 | Tesla “changes” car industry
    • Supreme Court must preserve system that has delivered huge reductions in emissions
      Dave Versical
      For Manheim head, fighting anti-Asian hate is personal
      Tom Roberts
      Will the auto industry rethink supply chain disruption now?
      GM lost a lot on EV1, but project pays dividends
    • Why Xiaomi holds promise of becoming formidable EV player
      Geely’s new EV push is decidedly new age
      Charging poles installed outside a Tesla store in downtown Shanghai.
      Unreliable public EV charging sites prompt automakers to take wheel
      VW Group's playbook to dominate EV market
    • Despite demise, EV1 was a risk worth taking
      A step in right direction for Nissan dealers
      ‘Voltswagen' April Fools' gag far from funny
      Less is more in lineups as well as on lots
    • Lunn was behind vehicles with impact
      ‘Voltswagen' was clever and fun
      With EVs, bias for traditional carmakers
      EV adoption in U.S. shouldn't be forced
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Toyota's Carter says EV portfolio will be varied
      AutoNews Now: Ram output said to be slowing as COVID cases surge
      AutoNews Now: Stellantis outlines electrification targets for U.S., Europe
      AutoNews Now: Audi targets EV mass market with Q4 e-tron
    • First Shift: Tesla's Musk: Autopilot not in use during deadly crash
      First Shift: GM: Market could alter 2035 EV goal
      First Shift: Indicted ex-Nissan exec Kelly 'blameless,' U.S. senator says
      First Shift: Ford, Nissan plan more downtime amid chip crisis
    • The life, death and legacy of GM's groundbreaking EV1
      Face-to-face with the General Motors EV1
      Toyota store's in-house training program retains more techs
      Virtual sales manager Jay Barger
      'Glued to a phone': Acura store's virtual sales boss lifts deliveries, efficiency
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Fixed Ops Journal Forum
    • Shift: Mobility at a Crossroads
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
      • Register for the 2021 Best Dealership To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Cars.com
    • DealerPolicy
    • Gentex
    • IHS Markit
    • Remember Group
    • Reputation.com
    • Ricardo: Dave Shemmans
    • Ricardo: Marques McCammon
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
    • DealerSocket: 5 steps to modernizing the buyer's journey
    • Epic Games: Build stunning, real-time car configurators with Unreal Engine
    • Epic Games: Real-time tech is the next frontier of automotive
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Ally: Do It Right
MENU
Breadcrumb
  1. Home
  2. Cars & Concepts
November 02, 2020 12:00 AM

EV startup targets classic luxury, not the green scene

Laurence Iliff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Lucid plans to build about 8,000 cars next year in the first phase of its new factory in Arizona.

    LOS ANGELES — Lucid Motors' first retail showroom outside of its Silicon Valley headquarters is located in the Beverly Hills auto plaza for a reason. A Mercedes-Benz store is just a mile away. Audi and Cadillac dealerships are within walking distance.

    The Lucid storefront, which opened in early October, looks out onto a section of Wilshire Boulevard populated with German sedans, European supercars and the occasional Rolls-Royce. The factory-run Lucid Studio and Service Center previously was a McLaren dealership.

    While Lucid at first blush evokes comparisons to the California electric vehicle startup that is now the world's most valuable automaker, executives don't see Tesla as its principal rival, despite similarities such as the direct-to-consumer retail model and promises of future autonomous-driving features.

    Rather, they see their first vehicle — the Lucid Air — as a no-compromise sedan with outrageous horsepower, industry-leading range and modern styling that puts it squarely in the premium space regardless of propulsion system.

    "We’re overtly, unashamedly targeting Mercedes-Benz."
    Peter Rawlinson, CEO, Lucid

    "We're overtly, unashamedly targeting Mercedes-Benz," Lucid CEO Peter Rawlinson told Automotive News last week. "For the Lucid Air, the natural competitor is an S-Class Mercedes. For the Air Dream Edition, it's the AMG version of the Mercedes — but with a lot more performance and a lot cooler."

    Lucid plans 20 brand stores across North America by the end of 2021 to tap into the high-end market, starting with the Air next year and an SUV two years later. They also plan exports, eventually to China.

    The launch vehicle — the Air Dream Edition — offers 1,080 hp and up to 500 miles of range for $169,000 before EV credits and shipping costs. Deliveries of the limited edition are expected in spring 2021. More modest Grand Touring and Touring trims will follow later that year. The base Air, at $77,400 before EV credits and shipping, is set for production in 2022, also at Lucid's new Arizona factory.

    Lucid claims the Air will be the quickest luxury sedan on the market, with a 9.9-second quarter-mile run. It also will have industry-leading range from its 113 kilowatt-hour battery, the fastest charging available at 350 kilowatts, the biggest front trunk and it will be the world's most aerodynamic production luxury vehicle.

    "We've replaced range anxiety with range confidence and we've done so through efficiency — not extra batteries," said Rawlinson. "It's really difficult to get extra range through extra efficiency, but we've done that through our in-house technology."

    While the Tesla Model S and Porsche Taycan EV are obvious competitors, Lucid is targeting the broader $100 billion global market for large luxury sedans and plans to export to Europe and the Middle East by 2022, said Rawlinson, former chief engineer for the Tesla Model S.

    One advantage of the Air over the S-Class and other rivals, Rawlinson said, is space efficiency. The Air is smaller on the outside but bigger on the inside. That was made possible through the miniaturization of the Air's EV components compared with gasoline-powered cars and even other EVs.

    In contrast to tech-heavy Tesla with its relatively spartan interiors and lack of physical buttons, Lucid is stressing more luxurious materials, immaculate fit and finish and rich paint quality — along with high-resolution screens across the dash and center stack. The main screen measures 34 inches.

    The Air was formally revealed in September, four years after the first prototype was made public. Lucid's final step toward production was made possible by a more than $1 billion investment by the Public Investment Fund of Saudi Arabia that closed in early 2019.

    Rawlinson suggested in an interview that the investment was much more than $1 billion — "maybe even" more than $1.3 billion, he said when pressed. Lucid is being very careful with those funds, he said, building only the first phase of its Arizona factory to meet a 2021 production goal of 8,000 cars or so.

    At the September launch of the Air, Lucid also gave an early look at a stylish SUV it is developing on the same platform. Lucid said the vehicle, called Project Gravity, would arrive in 2023. The EV startup also is developing a smaller vehicle platform for more affordable cars and crossovers, Rawlinson said.

    The brand’s launch vehicle is the 1,080-hp Air Dream Edition, seen at the Lucid Beverly Hills studio.

    Sam Abuelsamid, principal research analyst at Guidehouse Insights, said that like other automotive startups, Lucid has a tough road ahead financially, even with a solid product.

    "It's very much like the Tesla business model in that they are starting at the high end of the market to generate revenue and then gradually move down market to something more affordable at higher volume," he said. That didn't even work fully for Tesla, which had to repeatedly tap capital markets.

    A big challenge for Lucid is the high price point for its launch vehicle, despite the Air's impressive specifications, Abuelsamid said. One possible advantage over Tesla in drawing buyers of gasoline-fueled sedans is the Lucid Air's focus on traditional luxury values such as cushy interiors and high build quality.

    "I think the Air is much more like a luxury vehicle," he said. "Maybe not as ostentatious as a Mercedes S-Class, but going after a different sort of luxury, focusing on the technology and executing well. Can they execute to a level where people are going to spend that kind of money? We'll see."

    In Lucid's Beverly Hills studio, there's a lot of excitement among the small staff. The main draw for buyers is the Air Dream Edition. But there also are presentations about the unique technology within the vehicle: the motor, the battery modules, the California-themed interiors for all of the Air trims.

    There's also a virtual reality station with a mock vehicle interior. Sales Manager Matthew Grieci said Lucid shoppers can configure their Air order online and then go into the studio to see how the interior will look in the mock vehicle before putting down their refundable deposit.

    While most visitors to the studio sign up online for a tour that can take an hour or longer, there are walk-ins as space and coronavirus precautions permit, Grieci said.

    Lucid is developing an SUV called Project Gravity, shown, on the same platform as its Air sedan. The SUV is expected in 2023.

    "We love having walk-up traffic when it's safe to welcome them in, because those are folks that have never met the brand," he said. "We have our ardent followers since before we were even called Lucid that come into the studio, but we also have people who've walked in for the first time, spent 15 minutes and said, 'How do I sign up for one?' "

    Although current EV owners are natural clients for Lucid, Grieci said some of those making appointments are coming from gasoline-powered vehicles and want to see whether a high-end EV can fit into their lifestyle. A recent client, he said, owns a BMW 7 Series sedan, which competes with the S-Class.

    "That's the kind of person where they've never considered an EV before because there hasn't been an offering that was to their liking or their taste," Grieci said. "You explain to them very quickly that they charge the car at their house and wake up every morning with 500 miles of range."

    RECOMMENDED FOR YOU
    Mercedes bypasses crossover route, enters EVs sedan-first
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Mercedes bypasses crossover route, enters EVs sedan-first
    Mercedes bypasses crossover route, enters EVs sedan-first
    VW family grows with 3-row ID6 crossover
    VW family grows with 3-row ID6 crossover
    Mercedes aims to draw tech enthusiasts with EQS
    Mercedes aims to draw tech enthusiasts with EQS
    Remember Group CEO on how dealers can boost customer loyalty
    Sponsored Content: Remember Group CEO on how dealers can boost customer loyalty
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 4-19-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 4-12-21
    Read the issue
    See our archive
    CARS & CONCEPTS NEWSLETTER: Sign up for a Tuesday afternoon newsletter roundup of products, concepts and auto show news, including photo galleries, blogs and links to car reviews.
    WEEKLY NEWSLETTER: Sign up to start your week with the top stories from the latest issue of Automotive News, delivered to your inbox first thing each Monday morning.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Citroen
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Opel
          • Peugeot
          • Ram
          • Vauxhall
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Final Assembly
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Fixed Ops Journal Forum
        • Shift: Mobility at a Crossroads
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
          • Register for the 2021 Best Dealership To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Cars.com
        • DealerPolicy
        • Gentex
        • IHS Markit
        • Remember Group
        • Reputation.com
        • Ricardo: Dave Shemmans
        • Ricardo: Marques McCammon
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Capital One Auto: Dealerships remain vital to an increasingly digital car shopping journey
        • DealerSocket: 5 steps to modernizing the buyer's journey
        • Epic Games: Build stunning, real-time car configurators with Unreal Engine
        • Epic Games: Real-time tech is the next frontier of automotive
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • Google: Google's dealer guidebook helps dealers navigate today's digital landscape
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Motormindz: Toward hyperconnectivity: 5 ways to position your business to profit from connected car
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Ally: Do It Right
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds