Lucid Q3 sales skyrocket thanks to discounts, incentives

Electric vehicle startup Lucid has now passed its previous quarterly record, relying on heavy incentives and discounts to drive demand throughout Q3.

Driving the news: EV sales were a bright spot for an otherwise spotty quarter, which saw most automakers fall behind prior-year sales due to a number of challenges ranging from severe weather to cyberattacks. That being said, not everyone was able to pull through with stronger EV performance: Ford fell behind General Motors in the segment and Rivian sales fell 27% from Q3. This makes Lucid’s Q3 growth especially strong by comparison.

• Lucid sold 2,781 vehicles between July and September, up roughly 91% from last year.

• The massive jump puts the company’s sales at 7,142 units for the first nine months of the year, well above the 6,001 deliveries it made throughout the entirety of 2023.

• Production was the only low point for Lucid during Q3. The company built 1,805 vehicles by the end of the quarter, 305 units less than in Q2. This leaves the startup with only three months to build 3,358 vehicles, the number needed to achieve its annual target of 9,000 units.

Zooming in: While Lucid saw strong growth and has much to look forward to with the Gravity SUV launch set for later this year, its performance is slightly undermined by the heavy price cuts and incentives it’s been implementing.

• The 2025 Air sedan ($69,900) now costs roughly $20,000 less than it did when the vehicle launched two years ago. Buyers can save big depending on the trim they buy: for instance, Lucid is offering $17,500 in savings for purchases of the 2024 Air Grand Touring.

• The company is also leveraging financing and lease deals to drive sales. The 2024 Air Pure can be leased for $549 a month for three years or financed with an attractive 1.99% APR for 72 months. The latter deal comes with a $7,500 credit.

Zooming out: While that might seem to reflect poorly on Lucid, the reality is that most of Q3’s EV growth can be attributed to incentives and improvements in affordability.

• By mid-Q3, incentives accounted for 13.3% of the average EV transaction price and were worth 80% more than the typical ICE incentive, according to Cox Automotive.

• Some brands were especially aggressive. Tesla implemented zero down payment offers for Model 3 and Model Y purchases in September, both compatible with an attractive low APR offer.

Bottom line: Lucid is currently maintaining its growth trajectory. That’s an impressive feat given the market’s challenges, even if its sales remain on the smaller side compared to competitors. At the same time, the more companies have to sacrifice to drive sales, the longer it will take for EVs to become profitable. Startups may be especially vulnerable at this point in the market.

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