Question

Write a short conclusion about this article

Lucid is among a wave of electric-vehicle startups getting closer to releasing their first models, looking to challenge traditional auto makers like General Motors Co. and Volkswagen AG that are investing billions in the technology and Tesla Inc., a company that continues to dominate the scene for high-price battery-powered cars.

Backed by Saudi Arabia’s sovereign-wealth fund, Lucid is taking aim at the luxury end of the market with the Air, hoping to not only carve into Tesla’s market share but also attract more conventional sedan buyers from BMW AG, Daimler AG ’s Mercedes-Benz and other premium brands, its executives say.

Chief Executive Peter Rawlinson said that based on the company’s own testing, the priciest Air is expected to deliver a battery range of more than 500 miles, a distance that would beat current competitors, including the longest-range version of the Tesla Model S. The Environmental Protection Agency hasn’t certified that range yet.

The first, fully loaded four-door Air will start around $160,000 after factoring in federal subsidies. The company will release cheaper versions throughout the year with a roughly $70,000 version coming in 2022.

Like Tesla, Lucid plans to sell its models directly to customers, bypassing the traditional dealership network, and expects to open a new retail and service location in Beverly Hills, Calif. later this month.

Mr. Rawlinson said that while there have been pricier electric models released in recent years, Tesla still holds a commanding lead and there is room for more competition.

“We see just how far ahead Tesla is,” he said. “They are five years or more ahead of everyone else, and the shock is the gap is not being closed. The gap is growing as we speak.”

The Lucid Air makes its debut as tougher auto-emissions regulations are pushing car makers to add more battery-powered models to their lineups, and investors, excited by Tesla’s recent stock market success, are pouring money into the technology. Tesla’s market value has nearly quadrupled this year, making it the world’s most valuable auto maker ahead of GM, Toyota Motor Corp. and Volkswagen.

The Air also arrives as the marketplace for electric cars is expected to become increasingly crowded in the coming years, with dozens of new plug-in models planned, including many aimed at wealthier buyers. Investors are excited by the startups, several of which went public this year and have seen their valuations soar.

Some upstarts, like Rivian Automotive LLC and Nikola Corp. are choosing to align with traditional auto makers that have deeper pockets and the car-manufacturing expertise to help them realize their plans. This week, GM said it would take an 11% stake in Nikola, a maker of electric and hydrogen fuel trucks, in exchange for helping it to engineer and build its first model.

Answer 1

Lucid Motors comes close to the launching of the first models in a surge of electric car startups. After taking federal assistance into account, the first fully loaded, four-door Air begins at around $160,000. The firm will issue cheaper models in 2022, at about $70,000. This year the market cap of Tesla has almost quadrupled, making it the most important car manufacturer in the world. Dear new plug-in models, many of them targeted at affluent consumers, are projected to get ever more crowded on the demand for electric vehicles in the years ahead. Lucid Air debuts as tighter vehicle pollution standards compel car manufactures to make ever more of it.

While the company has been backed by Saudi Arabia’s sovereign-wealth fund, lucid aims to go deeper into the consumer market segemnt of EVs giving tough competition to Tesla’s market share as welll as attracting more conventional sedan buyers from BMW AG, Daimler AG ’s Mercedes-Benz and other premium brands.

The economical power of the EVs to provide more milage would be a determining factor of success for this company .

It has been also cited that Rivian Automotive LLC and Nikola Corp. decided to accommodate conventional car manufactures. GM said Nikola, a manufacturer of electric and hydrogen fuel vehicles, will have an 11 per cent share.