Lucid Group, Inc. LCID has slashed prices on its more expensive electric sedan, but the price incentive isn’t available to all buyers, a report said on Friday.
What happened: Lucid is offering a $7,500 discount off its Air sedan to customers who lease the vehicle through its Lucid Financial Services, Drive Tesla Canada reported, citing an email from the company to reservation holders.
The Newark, Calif.-based EV maker reportedly said in the email that the price reduction will take the form of a capital cost reduction, requiring reservation holders to pay lower monthly installments for their rented Air sedans. This would mean the company’s Lucid Air Grand Touring will now cost a buyer $131,500, still more expensive than from Tesla, Inc TSLA Model S checkered. With the cuts announced by the Elon Muskcompany conducted earlier this month, the Plaid is priced at $114,990.
See also: Is Lucid Stock a Good Buy
Why it’s important: Tesla, the leader in the electric car industry, has announced a wave of downward price adjustments since late last year. The biggest of these happened on Jan. 12, when it announced price cuts of 5.7%-13.5% across all of its models.
Following the move, analysts said it would lead to subsequent cuts by all industry players to position their vehicles at competitive prices.
Lucid saw its reservations drop late last year, though the company managed to surpass its lowered production guidance for the year. The company offered its employees an $18,000 rebate on its vehicles in early December.
Lucid closed Friday’s session up 4.97% at $7.82, according to data from Benzinga Pro.
Read Next: Tesla’s Price Cuts Boost Orders, GM’s Baby Pickup, Ford Wants to Go Solo in Europe and More: Biggest EV Stories of the Week