JAKARTA – The electric car maker Lucid is considering raising the price of its products for future models. Heavy inflationary pressures have forced executives to make those price changes, Thursday, March 17.
However, Lucid remains committed to respecting the orderers who have entered and providing the same price to them, without any increase or additional price.
"There's an inevitability that we'll have to look at the price point of the models that will come out in the future," CEO Peter Rawlinson told Reuters. This was forced to do because of the soaring price of nickel after Russia invaded Ukraine.
"I think it would be foolish of me to say that we would never raise our prices," Rawlinson said in an interview on the sidelines of the Southwest (SXSW) music, technology and film festival.
"What we want to do is to honor and keep our commitment to our existing orderers. I think that's what was poorly received in the market with Rivian," said Rawlinson.
He was referring to a decision this month by electric truck maker Rivian to raise prices on existing orders and then the decision to reverse course after consumers protested against it.
Tesla Inc recently also raised vehicle prices in the United States and China after CEO Elon Musk said the biggest electric car maker was facing significant inflationary pressures. The current increase in the price of raw materials and logistics is inevitable.
“Not all EV's are the same, and there is such a thing as a gas-guzzling EV. Efficiency is king. That's why the #LucidAir has the best efficiency at 4.6 mi/kwh.” - CEO and CTO Peter Rawlinson #SXSW2022 pic.twitter.com/rZCjqXgpy0
— Lucid Motors (@LucidMotors) March 17, 2022
Lucid in February cut its production forecast for this year to a range of 12,000 to 14,000, from its original target of 20,000 vehicles. They reasoned "extraordinary supply chain and logistical challenges." Its shares fell after the announcement.
Rawlinson on Thursday said the production bottleneck was caused by a handful of suppliers for windshields, carpets and some parts of the exterior trim experiencing problems.
“I am very frustrated that we are not currently limited by silicon chips. But now, we are not limited by our ability to make electric motors," said Rawlinson.
“Switching to a different supplier for those parts will reduce our quality”, he said.
He questioned whether Rivian would be able to profit from his pickup truck without raising prices, given the cost of battery packs has now also increased. Rivian did not immediately comment on the matter. They chose silence.
"I don't think even we can, with the best technology in the world, make a pickup that's practical and affordable," he said.
Tesla, according to Elon Musk, faces a "major challenge" in building and developing its electric pickup to appear affordable. "If it's really hard to do it for Tesla, despite our much larger economies of scale & better technology, then it's nearly impossible for anyone else," Musk said.
Rawlinson also said Lucid had begun prototype production of an in-house battery cell. He also added that they also have partnerships with battery suppliers Samsung SDI and LG Energy Solutions.
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