Silicon Valley · 16 May 2022

Inside Valley – Lucid Motors brings its Tesla rival to Europe

California's Lucid Motors is coming to Europe – long range, fast charging, but still battling production issues. A visit to headquarters.

In this episode of Inside Valley I visit Lucid Motors headquarters in Newark, California, shortly before the brand’s European launch. Chief engineer Eric Bach – a former Tesla and Volkswagen veteran – shows me around. The premium electric cars are impressive, but can Lucid actually take on Tesla in Europe?

What is at stake

California’s Lucid Motors opens its first European store at Odeonsplatz in Munich on 13 May 2022 – and simultaneously expands to the Netherlands, Norway and Switzerland. CEO Peter Rawlinson is regarded as one of the fathers of the Tesla Model S, and many employees come directly from Tesla. Lucid is following the same playbook: start with the premium segment, build the brand, then move downmarket.

What the cars can do

The Lucid Air Dream Edition R offers a range of 800 kilometres on a single charge – a record in its class. The performance variant, the Dream Edition P, delivers 1,111 horsepower and accelerates from 0 to 100 km/h in 2.7 seconds – fractionally quicker than Porsche’s Taycan. The chassis is entirely aluminium, with many components newly designed to save weight and improve rigidity. “The structure is 100 per cent aluminium,” Bach says, patting the chassis proudly during the walkthrough.

Where the challenges lie

Design, range and acceleration impress. But the build quality of the first deliveries has drawn widespread criticism. Lucid is still struggling with production problems and delivering more slowly than promised. “Ramping up production and the distribution network, getting service right – that’s no cakewalk,” says automotive expert Stefan Bratzel of the Center of Automotive Management. And unlike when Tesla first came to Europe, there is now fierce competition: Porsche Taycan, Mercedes EQS, BMW iX.

Why the European bet is still necessary

At prices starting at 218,000 euros, Lucid is targeting wealthy buyers – the Air Dream Edition costs over 90,000 euros more than a comparable Tesla Model S Plaid. The strategy is to establish a premium image first, then expand downward. But that playbook takes time, capital and a functioning service network. All three are still works in progress.

I wrote the full analysis for Handelsblatt.

From the Handelsblatt print archive

May 11, 2022 · Handelsblatt no. 091 · page 028 ·ELEKTROMOBILITÄT

Lucids riskante Wette auf Europa

Long celebrated as a Tesla rival, the American carmaker faces enormous challenges as it enters the European market.

Machine translation. The verbatim German original is in the Handelsblatt print edition (link below).

Lucid Motors is giving its European expansion a big push. In the entrance hall of the company's headquarters in Newark, California, the first examples of the debut model Lucid Air stand directly next to the declared competition: Tesla and VW. Chief engineer Eric Bach leads an international group of journalists on a tour, compares the vehicles – and extols his company's innovations. At one point Bach stops in the middle of the room in front of a Lucid car chassis, leans forward and gives the model a brief tap. "The structure is 100 per cent aluminium," says Bach proudly. Other manufacturers do the same, he says, but much of this chassis was newly designed to save weight and ensure stability.

Lucid is regarded by experts as a promising newcomer among electric car makers. Many employees come – like Bach – from Tesla. Lucid CEO Peter Rawlinson is considered one of the fathers of the Tesla Model S. "Lucid's innovations are impressive," says Stefan Bratzel, director of the Center of Automotive Management. "Much of it is reminiscent of Tesla." To follow in the footsteps of its great role model, however, Lucid needs to expand. That expansion is now starting in Europe too. On Friday the first store opens at Odeonsplatz in Munich. By the end of the year the first vehicles should be delivered, at a hefty price: the Air Dream Edition costs 218,000 euros – more than 90,000 euros more than a comparable Tesla Model S Plaid. At the same time Lucid is expanding to the Netherlands, Norway and Switzerland.

A necessary but bold move: Lucid is still battling production problems. Expert verdicts on the first deliveries are mixed – design, range and acceleration impress, but the build quality of the Lucid Air is widely criticised. Expanding to Europe is the right step for the company, says automotive expert Bratzel. But the pressure to succeed is growing. "Ramping up production and the distribution network, getting service right – that's no cakewalk," he says. Unlike when Tesla entered the market, there is now fierce competition.

With two variants of the Lucid Air, the Californians are targeting well-heeled customers. The Lucid Air Dream Edition R achieves a range of 800 kilometres and is aimed primarily at high-mileage drivers. The Lucid Air Dream Edition P is tuned for performance at 1,111 horsepower and accelerates from 0 to 100 kilometres per hour in 2.7 seconds – even fractionally faster than the Taycan, Porsche's most powerful model. Lucid is following Tesla's strategy of first establishing a vehicle in the premium segment to build a strong image, which should later carry over to more affordable models – just as Tesla did with the Roadster and the Model S.