The market for ultra-luxurious electric vehicles is about to reflect a fierce rivalry.
After having this lucrative segment to itself for many years, Tesla (TSLA) and Chief Executive Elon Musk must reckon with a young wolf that has sharp teeth.
The looming rivalry between the Austin EV leader and the Northern California upstart Lucid (LCID) is a clash that fans of cars and sports love. Some speak of rivalry week, while others of clasico in soccer. The score is 0-0 at the start regardless of what one or the other has done before this summit.
World's Wealthiest Man Vs. Oil-Backed Powerhouse
The two companies are formidable.
Tesla fans are ultras, ready to go to war to defend their champion. They believe that their hero plays in a separate court and is unique. CEO Musk wants to be the most visionary CEO, promising to save the planet from pollution via Tesla.
The serial entrepreneur promises that by the end of the year Tesla cars will be able to drive themselves, thanks to advances in its full-self-driving driver-assistance system.
Tesla has four production sites -- in the U.S., China and Germany -- which enables it to serve the most important electric-vehicle markets. Tesla has the tools to meet its global ambitions.
Lucid Motors
Lucid, however, presents a serious challenge.
The company has a powerful and deep-pocketed shareholder, Public Investment Fund, the sovereign wealth fund of Saudi Arabia. The fund's financial power has increased as crude-oil prices have soared -- Saudi Arabia is the world's largest oil exporter. Musk in 2018 had approached PIF to consider taking Tesla private. But with PIF in its corner, Lucid can dream of dethroning Tesla.
Moreover, Lucid will soon start building its second production plant -- in Saudi Arabia.
This facility, which will follow the company's current production site in Arizona, will enable the group to serve international markets.
The backing of PIF, which owns more than 60% of Lucid, also enables the company to innovate technologically. Lucid can thus cite its development and production of its own electric motors and battery packs, avoiding the need to rely on third-party suppliers for certain crucial components.
Tesla
Sedans That Look Like Supercars
Now the weapons.
Up to now, Lucid has marketed one sedan, the Lucid Air. This vehicle was crowned luxury electric vehicle of 2022 by Cars.com.
But now Lucid has introduced two vehicle lines that it hopes will set the standard in ultra-luxury EVs.
First, consumers have a choice of four variants of the Air -- Lucid Air Pure, Air Touring, Air Grand Touring and Air Grand Touring Performance.
The group is betting heavily on the Lucid Air Grand Touring Performance, which can deliver 1,050 horsepower and a maximum speed of 168 mph. It can compete with the best supercars, with a 0-to-60 mph shot in less than 2.6 seconds. And its range is as much as 446 miles on a single charge.
"This unparalleled fusion of strengths is the product of Lucid’s ground-breaking in-house technology, like our miniaturized drive units with unrivaled power density and race-proven 900V+ battery and power architecture," Peter Rawlinson, who is Lucid's CEO and chief technology officer, said in a statement. This means owners will be able to charge the car with 300 miles of range in just 21 minutes.
The Lucid Air Grand Touring is almost as powerful as the performance version. It delivers 819 horsepower, a maximum speed of 168 mph, a 0-to-60 mph shot in 3 seconds, and a range of 516 miles.
The Lucid Air Grand Touring Performance is base-priced at $179,000, while the Lucid Air Grand Touring starts at $139,000. Deliveries of the Air Grand Touring Performance will begin in June and those of the Air Grand Touring are in progress.
Tesla for its part has the Model S luxury sedan and especially the Model S Plaid, which is base-priced at $140,490.
The Model S Plaid delivers 1,020 horsepower, about equaling the Lucid Air Grand Touring Performance.
It goes 0 to 60 mph in 1.99 seconds with a maximum speed of 200 mph, exceeding the performance vehicle from Lucid. But its range -- varying from 348 to 396 miles -- is short of that of both Lucid Grand Touring models.
And make no mistake: Tesla has huge advantages including its standing as the market leader, production of thousands of vehicles, and enormous name recognition, the latter due in no small part to the marketing prowess of CEO Musk.
