Lucid Announces the Earth Compact SUV for Budget-Conscious EV Buyers
Lucid Motors has confirmed the introduction of a new, smaller SUV, named for now the "Lucid Earth Compact SUV." A recent trademark application revealed the brand's upcoming, more affordable model. This new addition is scheduled to arrive in 2026, following the launch of the Lucid Gravity SUV expected later this year.
The United States Patent and Trademark Office application included three names: Earth, Lucid Earth, and Earth Dream Edition. The Lucid Earth Compact SUV is anticipated to be the company's most affordable model, with production slated to begin in 2026. Sized similarly to the Tesla Model Y, it is expected to have a starting price below $50,000.
During the company's first-quarter earnings call, Lucid CEO Peter Rawlinson confirmed the new model, although the Earth name was not disclosed until the trademark application was discovered. Rawlinson stated that the midsize Lucid Earth Compact SUV would be priced around $48,000 and emphasized the company's commitment to achieving high efficiency to meet customer expectations for range.
The Lucid Earth Compact SUV could be a critical model for the automaker, especially as competitors have time to make updates before its release. Although the Tesla Model Y is due for a refresh, recent challenges at Tesla could delay its updates.
Lucid Motors, backed by significant investment from the Saudi Arabian government, faces uncertainties despite increasing first-quarter deliveries compared to the same period in 2023. The company's projection of 9,000 units for this year falls short of analysts' expectations by approximately 25%. Rawlinson expressed confidence that the upcoming Gravity SUV would boost sales, but the company has reported considerable losses per unit delivered, raising concerns about profitability without reducing supply chain and production costs.
In the coming years, Lucid's lineup will expand from one to three electric vehicles. Currently, the Lucid Air sedan is the only model available, but it will be joined by the Gravity SUV later this year and the Lucid Earth Compact SUV in 2026. The new midsize platform will begin production at Lucid's second Advanced Manufacturing Plant (AMP-2) in Saudi Arabia.
Rawlinson reiterated the importance of efficiency for the Lucid SUV, highlighting that a smaller battery is essential for lower costs and achieving the desired range. The projected sub-$50,000 starting price for the Lucid model positions it as a more accessible option compared to the current Lucid Air sedan, which costs about $20,000 more. Pricing for the Gravity SUV is expected to start around $80,000.
The announcement of the Lucid Earth Compact SUV, set to be Lucid Motors' most affordable model at under $50,000, is promising for consumers seeking a high-efficiency electric vehicle at a competitive price. The potential for increased market accessibility and expansion of Lucid's lineup are significant advantages. However, concerns about Lucid's financial stability and the challenge of achieving profitability amid substantial per-unit losses and supply chain issues highlight potential risks. Additionally, the competitive landscape, particularly with Tesla's pending updates, adds uncertainty to Lucid's success.
In their latest announcement, Lucid Motors revealed the 2024 Lucid Air Grand Touring updates, highlighting improvements in efficiency and design. Also, find out which Lucid models have the best EV lease deals this month.
