Electric vehicle maker Lucid (NASDAQ:LCID) isn’t one of the biggest names in the electric vehicle market. However, it’s playing like one of the big boys right now by taking a page out of Tesla’s (NASDAQ:TSLA) book. It’s joining in the EV price wars and offering credit toward one of its flagship models. A while back, certain changes in federal rules kept Lucid cars out of the running when it came to tax incentives.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
That didn’t sit well with Lucid, who likely realized it would lose out to companies that were receiving free government money for their cars. So rather than let that stand, Lucid offered its own incentive plan: $7,500 off the Air Touring and Air Grand Touring lines of Lucid cars. Since both have a six-figure starting price tag, the $7,500 off isn’t exactly a major discount. Nevertheless, given that it matches the tax credit normally offered, it doesn’t need to be that pronounced.
Those interested in the discount will need to act quickly, as the deal expires on March 31. Some reports, however, suggest there’s a different motive behind the price cut. The biggest reason is actually to clear out excess inventory. Right now, there are 15 Air Grand Tourings and seven Air Tourings available for immediate delivery. This makes some sense, as the base-model Air isn’t getting any kind of cut, and Lucid may want to focus on one model to better compete.
Lucid has its share of skeptics among analysts. Currently, Wall Street consensus calls Lucid a Hold. Thanks to its average price target of $13.29, Lucid has 26.09% upside potential.
