Lucid Motors Bolsters Post-EV Tax Credit Strategy, Launches SUV Abroad

Lucid Gravity electric SUV. The company is launching sales of the vehicle in Europe while stepping up production in the U.S.

Lucid Motors

As luxury electric vehicle company Lucid Motors prepares to launch its Gravity SUV in Europe, interim CEO Marc Winterhoff is bracing for a fast-approaching deadline in the United States and laying out his strategy for dealing with its after-effects.

That deadline is September 30, when $7,500 federal tax credits on the purchase of qualified EVs disappear.

“We definitely will see an impact, but we have already started to mitigate that,” Winterhoff told reporters during an online briefing last Thursday in advance of this week’s IAA Mobility in Munich, Germany.

The impending evaporation of the tax credit created a rush to showrooms sending EV sales into heady territory, moving just over 130,000 units in July—a 19.7% spike over July, 2024 and 26.4% over June, according to Cox Automotive’s July 2025 EV Market Monitor.

Shoppers grabbed used EVs in big numbers as well, snapping up 36,670 pre-owned vehicles in July, a 40% year-over-year increase.

But the party is likely to be over once the tax incentives go away and dealers are already feeling pessimistic, according to Cox Automotive chief economist Jonathan Smoke who noted, “The outlook for future EV sales really comes as no surprise: Dealers have calendars too; they see the end of government-backed incentives fast approaching and are expecting a slowdown as the market adjusts to a new reality in Q4.”

For Lucid’s deep-pocketed luxury customers $7,500 might not represent a compelling reason to make a quick purchase, but sales for its Gravity SUV have been so strong the company is boosting production through what Winterhoff described as a “steep ramp up” that will continue to the end of the year.

“Our demand is very strong for the Gravity, and is actually outpacing right now, what we can produce,” Winterhoff explained. The top of the line Dream Edition is actually sold out, he revealed.

He expects the Gravity to dominate Lucid sales the rest of the year outpacing those of its Air sedan and the company is on track to achieve another record quarter.

Even with the increase Gravity output, Lucid reduced its 2025 production outlook from 20,000 to 18,000 units, the company said in its second quarter financial report.

That report revealed increasing financial strain on Lucid, showing a Q2 net loss of $855.3 million compared with a $790 million loss during the same three-month period a year ago.

Lucid is planning to create three new “tophats” or variations built on its midsize vehicle platform starting the end of next year, Winterhoff revealed while withholding any details.

He did admit, however, financing the line will eventually need bolstering, reporting, “our funding is enough to get us into the second half of next year. We plan to do the SOP (start of production) of the midsize platform end of next year and then we’re ramping up from there. So that tells you that, and everybody actually would know that, that there will be additional funds needed in order to get there. But right now we are until the second half of 2026, well funded.”

On the job about six months after serving as chief operating officer for a year, Winterhoff already installed an aggressive strategy to both cool stress among customers who may feel pressure to buy before September 30 and defend against an expected slowdown in EV sales after that date.

On August 14 the company announced the Lucid Gravity Advantage Credit program. Under the program qualifying lessees who place an order for a Gravity by September 30 and lease between October 1 and December 31 will be eligible to receive a $7,500 Lucid Advantage Credit. Existing qualifying customers are covered as well.

“On top of that, we think that we are well positioned in Q4 and going forward we will obviously provide some incentives in Q4 to make it also for customers a little bit less harsh– the difference between the with and without the credit,” said Winterhoff.

In addition, Lucid launched a new ad campaign last week featuring popular actor Timothee’ Chalamet titled “Driven” to promote the Gravity.

Looking ahead at the competitive landscape in the U.S. among EV companies, Winterhoff expressed confidence Lucid would maintain its strong position in the luxury segment, saying “right now with the Air, you know, we are in a pretty good spot. I mean, obviously we are planning to stay there. We are planning to do exactly the same with the Gravity as well. We think that we are very competitive with our products.”

Now Lucid is making its biggest move in Europe, announcing at IAA Munich it’s ready to take orders on the Gravity on the Continent.

“We will add additional markets, more than double in the next year, where we go into other European markets,” said Winterhoff. “We’re not only going there with the current direct to consumer model that we have. Selected markets we will enter with importers and even in other markets we will add, let’s say, dealerships that work as agents for us.”

Beyond retail, Lucid is covering its bets, having just closed a $300 million investment deal with ride hailing giant Uber Technologies Inc. Under the deal, robotaxis will be built by Lucid on the Gravity architecture and operate on Uber’s ride-hailing platform.

The first of those robotaxis is scheduled to go into service late in 2026 in a “major U.S. city,” according to the companies in a September 4 announcement.

Winterhoff is all too aware there are plenty of skeptics about the expected conversion from internal combustion engine vehicles to all- electric, admitting while sales are increasing, it’s at a slower pace than the industry had hoped.

But as he views moves by other automakers such as Ford Motor Co. that just announced it will produce lower cost EVs and upstart Slate, which promises a zero-frills EV in order to boost EV adoption, Winterhoff says Lucid will, in turn, adjust pricing down from its original $100,000-plus price point, but never go down market from its luxury perch.

“Now we are starting at 70, with the mid-size,” he explained. “The plan is to start at around 50 or slightly, slightly below. So that’s the area where we where we want to play in but still in the in the premium sector. We’re fully aware that there is strong competition. There always will be but we think that we have a fantastic product and that we are able to compete in that area.”