Lucid Increases Production of Gravity SUV Due to Rising Demand

Lucid Motors, the California-based electric vehicle (EV) manufacturer, is making waves in the automotive industry with its active licensing negotiations with multiple manufacturers, including Audi and Mercedes-Benz, for fuller deal arrangements.

The company is also gearing up for selective price moves on the Lucid Air in Q4, softening the transition as federal EV tax credits expire. This move comes as Lucid's BEV demand in the U.S. continues to rise, although it has been weaker than forecasted.

In an effort to stay ahead of the competition, Lucid is developing its autonomous driving stack in-house, partnering with companies to accelerate Level 2++/Level 3 capability and a robotaxi program connected with Uber.

The U.S. tariff impact on Lucid's vehicles is estimated to result in an 8%-15% rise in cost. In response, Lucid is re-evaluating sourcing and localization for parts to mitigate these costs.

Lucid's executives have also mentioned a partnership with Uber for a robotaxi program. The limited Dream Edition of the Gravity SUV has sold out, and production is ramping up steeply, with most deliveries for the remainder of 2025 being Gravity SUVs.

The high demand for the new Gravity SUV has surpassed the current production rate. Purchases for Lucid's luxury sedan and SUV are driven by the product experience - range, performance, and in-vehicle technology - more than by incentives.

Looking ahead, Lucid is due to start production by the end of 2026 of its first midsize SUV model, which will also reportedly spawn a sedan and hatchback. The company plans to remain a premium brand, not go "low-cost," with price ladders for their high-end Air/Gravity models, midsize models, and vehicles in the roughly $50,000 or lower starting price range.

Manufacturer pressure from the Chinese market will be dampened by export price deltas and Lucid's edge in technology and economies of scale. Requests for quotes have grown for Lucid's technology and partnerships, signalling growing interest in the company's offerings.

Lucid's Air sedan currently ranks as the best-selling U.S. BEV in its segment and ranks No. 3 in a larger premium set that includes internal-combustion-engine competitors. The company is on pace for its next record quarter.

However, the Aston Martin technology deal has been delayed. Despite this setback, Lucid is poised for continued growth and innovation in the EV market.