Lucid, renowned for its flagship Air luxury electric sedan, has unveiled the highly anticipated Gravity sport utility vehicle, marking a strategic move into a lucrative segment of the U.S. auto industry. The announcement comes amidst growing caution regarding slowing demand for electric vehicles (EVs).
Priced below USD 80,000 and boasting a top trim with a remarkable range exceeding 440 miles, the Gravity positions itself alongside rival Rivian’s flagship R1S SUV, with production expected to commence late next year.
Lucid’s CEO, Peter Rawlinson, shared insights at a preview, stating, “The Gravity will significantly expand our market opportunity, and open up a total addressable market that is nearly 3X larger and growing.”
The three-row, 5.3-meter-long Gravity, though equipped with a battery pack similar to the Air, has been meticulously designed on an entirely new platform, emphasizing Lucid’s commitment to innovation.
SUVs, constituting a significant portion of U.S. vehicle sales, continue to dominate the market as consumers prioritize safety, comfort, and versatility for both long drives and off-road adventures.
The success of the Gravity is pivotal for Lucid amid industry concerns about a potential slowdown in EV demand attributed to inflation and high interest rates. In response, EV manufacturers have engaged in a price war, influenced in part by market leader Tesla. Several companies, including Tesla, Ford, and General Motors, have adjusted their plans for EV and battery factory expansion.
Lucid, adopting strategic measures such as price reductions for the Air sedan and a shift in production targets for 2023, aims to align itself with market dynamics and enhance awareness through targeted marketing efforts.
The unveiling of the full-size luxury Gravity SUV in Los Angeles ahead of the auto show underscores Lucid’s commitment to meeting consumer preferences. The distinctive features, including a more square steering wheel and a 34-inch curved cockpit display, reflect the company’s focus on innovation and a unique driving experience.
As Lucid scales up production, it anticipates benefiting from economies of scale, given that both the Gravity and the Air will share the same production line. Cost control is paramount for Lucid, considering its significant cash burn. Ending the third quarter with USD 5.45 billion in cash, the company emphasizes its financial resilience to sustain production and development efforts into 2025.
