Lucid Motors isn’t about to let potential customers of the other American EV automakers have all the fun. Just because its EVs don’t qualify for federal tax credits under new terms in the Inflation Reduction Act does not mean customers looking to buy a new Lucid Air can’t get $7,500 off. That’s right – for a limited time, Lucid Motors is offering its own $7,500 credit for purchases of select models of the Air sedan.
It’s been well over a year since Lucid Motors began production of its Air sedan, and although the American Automaker warned the public it would be slashing its production targets for 2022 due to supply chain constraints, it did hit its (twice) revised production target for last year after a strong showing in Q4.
We got a chance to take the Air Grand Touring – Lucid’s second version of the sedan to reach customers – out for a long spin up the coast last year and were quite impressed. It was followed by the Touring version which began deliveries this past November and the Air Pure – Lucid’s most affordable version of the sedan.
Even at its most bare bones configuration, the Lucid Air Pure does not qualify for federal EV tax credits even though it is built in North America. It’s $87,400 price tag is well above the $55,000 limit for electric sedans laid out in the Inflation Reduction Act signed by President Biden last summer.
Competitors like Tesla on the other hand, have significantly dropped the prices of its EVs to qualify for tax credits… at least until the US Department of Treasury shares its battery guidance expected sometime in March. Furthermore, Tesla’s Model Y has been classified by the IRS as an SUV, bumping its MSRP threshold up to $80k and expanding its qualifications for tax credits. No such luck for the Lucid Air sedan.
Fellow automaker Ford has noted Tesla’s massive price cuts and responded by bolstering production of the Mustang Mach-E this year while also lowering its MSRP across all trims. Today, we’ve learned that Lucid has also taken note of these discounts to potential EV consumers and has essentially said, “Hey, our EVs don’t qualify for federal tax credits, but we’re gonna give you $7,500 off anyway.”
Well, at least through March.
The Lucid Air Grand Touring / Credit: Scooter Doll
Lucid announces its own $7,500 credit for EV purchases
According to news from Lucid Motors early this morning, it will offer its own $7,500 credit to buyers of select versions of the Air Grand Touring and Touring through March 31, 2023.
While the Lucid Air Touring and Grand Touring start at MSRPs of $107,400 and $138,000 respectively, an extra $7,500 should be welcomed by potential customers, especially since that’s up to $7,500 those customers do not qualify for from Uncle Sam due to the luxury sedan’s higher cost.
In a way, Lucid Motors is both joining the early stages of a potential EV price war, while also giving customers that were hoping for a federal EV tax credit what they would get if they were to purchase a qualifying model from a competitor. Lucid’s vice president of sales and service Zak Edson spoke:
We think our customers still deserve a $7,500 credit for choosing an EV. Lucid Air owners have told us how much they love this car, from the world-class driving experience to the elegant design and spacious interior. With this limited time offer, we hope to get Lucid Air into the hands of even more customers so they can experience the best for themselves.
In order to qualify for Lucid’s temporary EV credit, you must purchase an Air Grand Touring or Touring sedan no later than March, 31 and take delivery by April 30, 2023. The offer is not applicable to EVs with the Stealth look, PurLuxe interior, or a metal roof.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss China reaching the EV tipping point, Tesla’s retreat in Europe, EV buyers receiving some tax credit relief, and more.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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Cadillac is back and selling a surprising number of electric vehicles in the US. With a full lineup of electric SUVs, Cadillac now claims to be the leading luxury EV brand in the US. Can it keep it up even after the $7,500 federal tax credit expires?
After launching seven new electric vehicles this year, GM claimed that Cadillac became the leading luxury EV brand by market share. However, that doesn’t include Tesla due to its “pricing structure.”
Cadillac is coming off its best first-half sales since 2008, selling more vehicles across all 50 states. Nearly one in four Cadillacs sold in the US this year were EVs.
GM’s luxury brand is now selling more electric vehicles than some of its biggest rivals, including Porsche, Audi, Mercedes-Benz, Rivian, and Volvo.
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According to the latest data from Cox Automotive, Cadillac sold over 11,700 EVs in Q2, up 62% compared to last year. Through the first six months of the year, it has sold nearly 20,000 electric vehicles. In comparison, Porsche has sold almost 7,200 EVs in the US, Mercedes sold about 8,000, and Audi has sold just over 11,500.
2026 Cadillac Optiq EV (Source: Cadillac)
With an electric SUV in nearly every segment, including the entry-level Optiq, a midsize Lyriq, a three-row Vistiq, and the even larger Escalade IQ and IQL models, Cadillac is seeing an influx of buyers from other brands.
Cadillac prepares for the EV tax credit to expire
Around 70% of Cadillac’s EV buyers are from other brands, according to GM, and about 10% are former Tesla drivers. With big policy changes coming under the Trump administration, Cadillac, like the entire industry, will likely face some hurdles.
The administration already raised tariffs on imported vehicles and other auto parts, and at the end of September, the $7,500 federal EV tax credit is set to expire.
2026 Cadillac Vistiq electric SUV (Source: GM)
In response to the changes, many automakers are shifting back to hybrid and gas-powered vehicles. Cadillac is no exception.
“They’ll have to have both for a number of years now,” according to Sam Fiorani, the vice president of AutoForecast Solutions. Fiorani explained (via The New York Times) that “The gas-powered vehicles make the money, and the EVs bring them a new market.”
Cadillac ESCALADE IQL electric SUV (Source: Cadillac)
Cadillac was initially expected to have an all-EV lineup by the end of the decade. Thanks to the policy changes, Cadillac could continue offering hybrid and ICE vehicles for several more years.
Fiorani said that although GM planned to retire the gas-powered Escalade, it’s now due for a refresh that will be sold “well into the next decade.”
Cadillac LYRIQ luxury trim (Source: Cadillac)
Earlier this year, Cadillac’s global vice president, John Roth, said during a media briefing that the company was in a better position than most with the policy changes.
All Cadillac vehicles are built in the US, except the Optiq, which is built in Mexico. According to Roth, the policy changes will have “very limited impact, if you will, on the Cadillac brand.” If anything, Roth said, it could be an opportunity for the luxury automaker.
If you’re looking to get ahead of the $7,500 EV tax credit expiration, we can help you get started. Check out our links below to find Cadillac’s electric SUVs in your area.
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Australia Post is advancing its commitment to achieve Net Zero emissions across its operations by 2050 with the introduction of 36 new Mercedes-Benz eVito electric vans, expanding its existing fleet of over 5,000 EVs already in active service.
“This is our largest electric van trial to date,” explains Australia Post Chief Sustainability Officer, Richard Pittard. “It’s a meaningful step forward as we continue building a modern, sustainable delivery network that meets the evolving needs of our customers while reducing our environmental impact.”
The new eVito vans, once deployed at scale, will operate primarily in highly populated metro areas, where their positive impact on local air quality will be felt by the greatest number of people, and their respiratory health, as well.
Electrek’s Take
Mercedes eVito; via Australia Post.
This kind of deployment should be exciting to EV enthusiasts for a number of tried-and-true reasons, but this one is particularly exciting to Americans because we have an Administration actively pretending that electric postal vehicles aren’t ready for prime time. The success of programs like this one from Australia Post are just more egg in the face of these anti-EV clowns, and few things make me happier.
You can check out the official Mercedes-Benz Vans Australia eVito specs and measurements in the detailed brochure, below, then scroll on down to the comments and let us know what you think of MB’s baby Sprinter.
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