### Lucid CEO Claims Immunity from Potential EV Tax Credit Cuts Amid Stock Downturn

Lucid Motors, under the leadership of CEO Peter Rawlinson, asserts its strong position amidst potential cuts to the federal EV tax credit proposed by President-elect Donald Trump. Despite Rawlinson's confidence, Lucid's stock has recently plummeted to a record low of under $2 per share.

In the third quarter of 2024, Lucid marked its third consecutive record quarter in vehicle deliveries, selling 2,781 vehicles and bringing the total for the year to 7,142, surpassing the 6,001 deliveries made in 2023. However, the surge in vehicle deliveries hasn't translated to stock market confidence, especially after a Reuters report suggested Trump's transition team intends to eliminate the federal EV tax credit, which currently affords clean car buyers up to $7,500.

The report also highlighted that Tesla representatives have backed the plan to end the subsidy. Elon Musk, Tesla's CEO, who has endorsed Trump, stated that losing the credit would slightly affect Tesla’s sales but would be "devastating" for other US automakers. Although Lucid's luxury Air sedan, with a starting price of $69,900, does not qualify for the $7,500 credit, the company offers the benefit through leasing arrangements. Rawlinson noted that many of their customers exceed the income thresholds—$150,000 for single filers and $300,000 for couples filing jointly—making Lucid less dependent on the credit compared to other automakers.

Addressing Trump’s plans, Rawlinson commented on Bloomberg Television that Lucid is vastly more prepared to handle the potential policy change than its competitors. With Lucid’s strong emphasis on advanced technology, Rawlinson isn't concerned about Musk or other EV companies gaining an edge under Trump's administration.

Earlier this month, Lucid started taking orders for its first electric SUV, the Lucid Gravity, which starts at $79,800 and boasts a range of 440 miles per charge. Rawlinson described this model as a "landmark product" featuring cutting-edge technology, which he claims is significantly ahead of industry competitors. Furthermore, Lucid plans to launch a lower-priced midsize electric SUV starting at under $50,000, aiming production for late 2026 to compete directly with Tesla's Model 3 and Model Y.

Despite such initiatives, Lucid's shares have fallen nearly 17% this past week, reaching their lowest since the company's public debut in July 2021.

China’s auto industry, led by BYD, is rapidly advancing in the global market, supported by government subsidies and aggressive overseas expansion. BYD’s global deliveries are on a trajectory to surpass Ford by the end of 2024, with significant market share in Europe, Southeast Asia, and the Americas. In October alone, China sold a record 1.2 million EVs, contributing to a year-to-date total of 8.4 million—an impressive 38% year-over-year increase, overshadowing the US market's 1.4 million EV sales, up 9% year-over-year.

Rawlinson's assertion that Lucid could withstand the loss of tax credits better than others may hold some truth. However, the broader US auto industry, including key players like Ford, GM, and Stellantis, would likely face setbacks if the subsidies were eliminated, potentially delaying or scrapping several EV projects. Ford's CEO, Jim Farley, has warned of the risk of falling further behind Chinese manufacturers without substantial progress.

As the global EV market heats up, the potential end of US federal tax credits could dramatically reshape the competitive landscape, forcing American automakers to recalibrate their strategies in an accelerating EV race.