Lucid to Launch a Rival for Tesla’s Model 3 in 2024

Lucid CEO, Peter Rawlinson has confirmed that the startup is preparing a rival for the Tesla Model 3 that will hit the streets in 2024 or 2025. Therefore, it seems clear that the company is following the same strategy as its rival: After the launch of a large sedan (Air) and an SUV derived from it (Gravity), it will focus on a mass model, as Tesla already did with the Model S, Model X and Model 3.

According to Rawlinson, such a car’s production will be a tremendous financial challenge for Lucid because a huge investment will be required to move the project forward. Making a smaller car requires more capital because you need a bigger factory and more automation.

Some experts believe that Lucid will enter the mass market too late, as traditional manufacturers such as the Volkswagen Group are already launching models of this type. “There are serious doubts about whether there will be a market for Lucid in four or five years,” says Mel Yu, an auto industry analyst.

Lucid plans to release its first model, the Air, later this year, while the Pure access variant will launch in 2022 with a starting price of $77,400. The Gravity SUV, for its part, will arrive in 2023. After these models, Lucid will try to expand to other segments with higher sales volume.

“The world is in dire need of $ 25,000 cars. Realistically Lucid won’t be able to do them for another eight years.” In addition to a smaller car than the Air, Lucid is also considering launching pick-ups and even delivery vans, although, for the development of this type of Model, it could partner with other companies.

Lucid recently officially confirmed that it will go public to obtain the necessary funds to carry out its ambitious projects. To do this, it will employ a SPAC, a type of shell company that goes public for the sole purpose of raising money and then wholly or partially acquiring another company.

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