Lucid Motors, backed by the Saudi Public Investment Fund, plans to launch a rival Tesla Model 3 car between 2024 and 2025 and is preparing to produce its first electric car, the luxury Air Car, in late 2021, while the company was planning to launch it In the spring of this year.
This comes after Lucid Motors recently announced plans for an initial public offering through a merger with Churchill Capital IV, a New York Stock Exchange-listed special-purpose acquisition, in a deal that could be worth up to $ 24 billion.
Challenging Tesla competition
Lucid Motors, Tesla’s rival, the Model 3, will be a cheaper sedan, the company’s chief executive, Peter Rawlinson, told Reuters, adding that the focus will be on producing a larger, luxury car that requires fewer resources.
Manufacturing a smaller car requires huge funds, due to the need for a larger factory and more machines and equipment, Rawlinson said, noting that increasing production of huge cars represents a major financial challenge for the company.
Lucid Moutuz, headed by a former Tesla engineer, follows the same strategy as billionaire Elon Musk, which relies on starting a luxury car launch to attract the spotlight towards the brand and then expanding the market further afterward.
Automotive experts believe that it is too late for Lucid Motors to produce a more affordable model versus Tesla cars as the main players in the traditional car market have already introduced competing models to Tesla such as Volkswagen, Hyundai Motor, and Ford.
There are questions about whether a stake for Lucid Motors will remain in the competing car market for Tesla after about 4 or 5 years, according to auto industry analyst Mel U.
The company expects to produce a cheaper version – for less than $ 70,000 – of the luxury sedan in 2022, then it will focus on producing a multi-purpose sports car named Project Gravity in 2023, with small trucks and commercial vehicles to be developed, after several years with cooperation. With other partners, Rawlinson says.
A car for 25 thousand dollars
The world urgently needs an electric car at a price of $ 25,000, but Lucid Motors is practically unable to do that now and for another 8 years, Rawlinson said, adding that even Tesla has not yet launched such a model.
6 well-known automakers contacted Lucid Motors over the past month and showed interest in the company’s technology and the possibility of joint cooperation, indicating that this partnership could result in a $ 25,000 car industry in the next three to four years.
It’s too early for Lucid Motors to make its own battery cells at the moment as the company has contracts with mods such as LG Chem and Samsung SDI, according to Rawlinson.
Tesla deliveries in the fourth quarter of 2020 increased by more than 70% to 180.6 thousand cars compared to the same quarter in 2019, while deliveries are only 30% higher on a quarterly basis, but production in the fourth quarter of last year was much lower. .
Tesla topped global electric vehicle sales in 2020, with an estimated 499,535,000 units sold, more than double the sales of Volkswagen, which came second in terms of electric vehicle sales.
Sales of Tesla during the year allowed it to increase its share of the electric car market by 17.95%, and Volkswagen was the only other producer with a double-digit market share of 12.6%.
Tesla had started selling its Tesla Model 3 in 2017, targeting a wider market spread, and it was the fourth car to produce it, and in 2020, the Model 3 was the best-selling model of electric vehicle worldwide.
The 50-year-old Musk’s fortune has fallen $ 3.1 billion to currently register $ 166.1 billion, according to Forbes’ instant statistics, but he has maintained his position as the second richest billionaire in the world, after the founder of e-commerce giant Amazon, Jeff Bezos, who sits on the throne of the world’s richest with wealth. It is worth $ 186.9 billion, while French billionaire Bernard Arnault is in third place, with a fortune of $ 158.1 billion.
Tesla’s share price – in which Musk owns 21% of its shares – fell 2.19% to $ 698.84 by the end of trading on Wall Street on Tuesday.