EV startup Lucid enters lucrative SUV market with $80,000 Gravity
By Abhirup Roy and Peter Henderson
LOS ANGELES (Reuters) — Lucid (NASDAQ:LCID), known for its flagship Air luxury electric sedan, unveiled the much-awaited Gravity sport utility vehicle on Thursday, driving the startup into a lucrative section of the U.S. auto industry amid growing caution over slowing EV demand.
Starting at under $80,000 and with the top trim offering more than 440 miles in range, the Gravity sits right next to rival Rivian (NASDAQ:RIVN)'s flagship R1S SUV and is expected to go into production late next year.
Though the 5.3-meter-long, three-row Gravity will come with a battery pack similar to the Air, the vehicle has been designed on a new platform from the ground up, Lucid's Chief Executive Officer Peter Rawlinson told Reuters at a preview this month.
«The Gravity will significantly expand our market opportunity, and open up a total addressable market that is nearly 3X larger and growing,» Rawlinson told analysts on a post-earnings conference call last week.
Accounting for a chunk of U.S. vehicle sales, SUVs form a growing market with customers choosing them for safety, comfort, space and power during long drives and off-road trips.
Success of the Gravity, which was unveiled in Los Angeles ahead of the auto show opening on Friday, will be crucial for Lucid. Fear of a slowdown in EV demand from inflation and high interest rates is spreading across the industry.
To stoke demand, EV makers have joined a price war sparked this year by market leader Tesla (NASDAQ:TSLA). Many, including Tesla, Ford (NYSE:F) and General Motors (NYSE:GM), have pushed back planned EV and battery factory expansion or additions.
Lucid, which cut prices of the Air sedan as part of special offers to counter high financing
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