Lucid Motors to stand in competition with Tesla in the electric-vehicle market

Automotive - Himanshu Gill - Dec 05,2016

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lucid motors to stand in competition with tesla in the electric vehicle market

California based company, Lucid Motors is the latest manufacturer to try and take on Tesla’s market lead.

The company will set up a $700 million factory in Casa Grande, near Phoenix in Arizona to produce a new line of electric cars in the beginning of 2017. It aims at taking on market giants like Tesla and General Motors who are processing towards building electric cars, betting that millions of Americans will soon trade their conventional cars and trucks with an all new generation of battery cars.

However, it is still skeptical that the market will prove as big as the investment is. Purely battery electric vehicles (BEVs), currently accounts for only 0.4 percent of new vehicle sales in the US.

The startup electric car firm, headquartered in Menlo Park, had considered Tracy as a possible factory site but then decided to build its assembly plant in Arizona. Parts for the assembling of the company’s planned electric luxury sedans in Arizona will be manufactured in Sonora, Mexico. Production of its electric vehicles is scheduled to begin in 2018, with the workforce estimated to swell up to 2,000 within five years.

Doug Ducey, Arizona’s Governor has said that the state has provided a subsidy of $5 million to the company for selecting this state for production.

Lucid wants to stand in competition with Tesla, which has shown that there really can be a market for BEVs. Tesla has estimated to sell almost 100,000 of its Model S sedans and Model X SUVs in 2017; it also hopes to boost the sales up to 500,000 by as early as 2018, following the debut of its first mainstream model, the Model 3.

Lucid will initially launch a high-end battery car with 1,000 horsepower, making it one of the most powerful vehicles of its type. It would have the strength to deliver 400 miles per charge, according to the company.