Lucid Hits Back at Tesla With $7,500 Lease Discount
In response to customer frustration with the loss of the $7,500 tax credit, Lucid has extended a lease discount that offsets the credit.
The shockwaves from Tesla’s price cuts are starting to reach other automakers. Of all the ones who make EVs, Lucid is the first to break the stare, offering a fairly deep discount of $7,500 to anyone who leases any model of Air through Lucid Financial Services, matching the former $7,500 EV tax credit.
Lucid’s discount is a capitalized cost reduction for a lease, meaning that the discount is structured as an upfront payment of $7,500 for the lease, making monthly payments lower. This is in contrast to Tesla’s outright slashing of purchase prices for its EVs, but both ultimately achieve the same goal. But Lucid nor Tesla are the first to discount slow-selling EVs. It was the Chevy Bolt.
EV adoption is one of the hot topics of the automotive world, and it is fraught with challenges, as well as some misinformation. Any number of concerns could be leveled at EVs, from range, to charging, to the charging networks, to where the electricity comes from, and the ever-lingering question of whether the electrical grid can handle roads where EVs are the majority. Not to mention the dirty business of actually making the batteries, their lifespan, and the potentially difficult disposal.
Ultimately, consumers don’t necessarily fret over most of these issues. It’s all down to range, charging, and cost of owning the EV. And the federal $7,500 tax credit is at the heart of the current problem with EV sales. Though the fog of legislation is still clearing, the revised $7,500 EV tax credit under the Inflation Reduction Act and other legislation has twists and turns. For EVs to qualify, they need to be under the maximum price for their class and be assembled in the United States. For buyers to qualify, they need to make less than $150,000 annually for single filers and $300,000 for joint filers.
The confusion surrounding the EV tax credit is contributing to consumer trepidation, as well as a quickly saturating market for EVs. So automakers are taking control of it through their own methods, which works in the consumer’s favor. The $7,500 credit does reduce tax liability by that amount but does not add to a tax return. These automaker discounts make EVs cheaper for most folks than the tax credit did, though there are advantages to either. There is also a new scale for EV credits from $2,500 to the full $7,500.
Slow sales for Lucid might also contribute to the decision to discount cars directly. Nonetheless, it’s a tough market for EVs, but it is quickly becoming a buyer's market. If you’re looking to get into an EV, the time might be coming very soon.
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