Lucid Motors (LCID) announces limited $7,500 credit for Air EV purchases
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.
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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Wind energy powered 20% of all electricity consumed in Europe (19% in the EU) in 2024, and the EU has set a goal to grow this share to 34% by 2030 and more than 50% by 2050.
To stay on track, the EU needs to install 30 GW of new wind farms annually, but it only managed 13 GW in 2024 – 11.4 GW onshore and 1.4 GW offshore. This is what’s holding the EU back from achieving its wind growth goals.
Three big problems holding Europe’s wind power back
Europe’s wind power growth is stalling for three key reasons:
Permitting delays. Many governments haven’t implemented the EU’s new permitting rules, making it harder for projects to move forward.
Grid connection bottlenecks. Over 500 GW(!) of potential wind capacity is stuck in grid connection queues.
Slow electrification. Europe’s economy isn’t electrifying fast enough to drive demand for more renewable energy.
Brussels-based trade association WindEurope CEO Giles Dickson summed it up: “The EU must urgently tackle all three problems. More wind means cheaper power, which means increased competitiveness.”
Permitting: Germany sets the standard
Permitting remains a massive roadblock, despite new EU rules aimed at streamlining the process. In fact, the situation worsened in 2024 in many countries. The bright spot? Germany. By embracing the EU’s permitting rules — with measures like binding deadlines and treating wind energy as a public interest priority — Germany approved a record 15 GW of new onshore wind in 2024. That’s seven times more than five years ago.
If other governments follow Germany’s lead, Europe could unlock the full potential of wind energy and bolster energy security.
Grid connections: a growing crisis
Access to the electricity grid is now the biggest obstacle to deploying wind energy. And it’s not just about long queues — Europe’s grid infrastructure isn’t expanding fast enough to keep up with demand. A glaring example is Germany’s 900-megawatt (MW) Borkum Riffgrund 3 offshore wind farm. The turbines are ready to go, but the grid connection won’t be in place until 2026.
This issue isn’t isolated. Governments need to accelerate grid expansion if they’re serious about meeting renewable energy targets.
Electrification: falling behind
Wind energy’s growth is also tied to how quickly Europe electrifies its economy. Right now, electricity accounts for just 23% of the EU’s total energy consumption. That needs to jump to 61% by 2050 to align with climate goals. However, electrification efforts in key sectors like transportation, heating, and industry are moving too slowly.
European Commission president Ursula von der Leyen has tasked Energy Commissioner Dan Jørgensen with crafting an Electrification Action Plan. That can’t come soon enough.
More wind farms awarded, but challenges persist
On a positive note, governments across Europe awarded a record 37 GW of new wind capacity (29 GW in the EU) in 2024. But without faster permitting, better grid connections, and increased electrification, these awards won’t translate into the clean energy-producing wind farms Europe desperately needs.
Investments and corporate interest
Investments in wind energy totaled €31 billion in 2024, financing 19 GW of new capacity. While onshore wind investments remained strong at €24 billion, offshore wind funding saw a dip. Final investment decisions for offshore projects remain challenging due to slow permitting and grid delays.
Corporate consumers continue to show strong interest in wind energy. Half of all electricity contracted under Power Purchase Agreements (PPAs) in 2024 was wind. Dedicated wind PPAs were 4 GW out of a total of 12 GW of renewable PPAs.
Read more: Renewables could meet almost half of global electricity demand by 2030 – IEA
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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 the official unveiling of the new Tesla Model Y, Mazda 6e, Aptera solar car production-intent, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
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’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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The Chinese EV leader is launching a new flagship electric sedan. BYD’s new Han L EV leaked in China on Friday, revealing a potential Tesla Model S Plaid challenger.
What we know about the BYD Han L EV so far
We knew it was coming soon after BYD teased the Han L on social media a few days ago. Now, we are learning more about what to expect.
BYD’s new electric sedan appeared in China’s latest Ministry of Industry and Information Tech (MIIT) filing, a catalog of new vehicles that will soon be sold.
The filing revealed four versions, including two EV and two PHEV models. The Han L EV will be available in single- and dual-motor configurations. With a peak power of 580 kW (777 hp), the single-motor model packs more power than expected.
BYD’s dual-motor Han L gains an additional 230 kW (308 hp) front-mounted motor. As CnEVPost pointed out, the vehicle’s back has a “2.7S” badge, which suggests a 0 to 100 km/h (0 to 62 mph) sprint time of just 2.7 seconds.
To put that into perspective, the Tesla Model S Plaid can accelerate from 0 to 100 km in 2.1 seconds. In China, the Model S Plaid starts at RBM 814,900, or over $110,000. Speaking of Tesla, the EV leader just unveiled its highly anticipated Model Y “Juniper” refresh in China on Thursday. It starts at RMB 263,500 ($36,000).
BYD already sells the Han EV in China, starting at around RMB 200,000. However, the single front motor, with a peak power of 180 kW, is much less potent than the “L” model. The Han EV can accelerate from 0 to 100 km/h in 7.9 seconds.
At 5,050 mm long, 1,960 mm wide, and 1,505 mm tall with a wheelbase of 2,970 mm, BYD’s new Han L is roughly the size of the Model Y (4,970 mm long, 1,964 mm wide, 1,445 mm tall, wheelbase of 2,960 mm).
Other than that it will use a lithium iron phosphate (LFP) pack from BYD’s FinDreams unit, no other battery specs were revealed. Check back soon for the full rundown.
Source: CnEVPost, China MIIT
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