EOY delivery push

[Sid432]

Seems like Lucid is offering their employees $18k discounts to take deliveries EOY. I know most of the auto makers gives discount but in current situation is good or bad ? We have people who are happily want to take delivery so why not contact them. Give us that incentive and we will happily take care of delivery and shipping as long as the car checks out

Lucid is offering employees $18,000 discounts to buy its cars by the end of the year, tries to rack up orders

The program could help Lucid juice delivery numbers before the year's end as it ramps up production of its flagship Air sedan.

www.businessinsider.com

 

[joec]

Seems like Lucid is offering their employees $18k discounts to take deliveries EOY. I know most of the auto makers gives discount but in current situation is good or bad ? We have people who are happily want to take delivery so why not contact them. Give us that incentive and we will happily take care of delivery and shipping as long as the car checks out

Lucid is offering employees $18,000 discounts to buy its cars by the end of the year, tries to rack up orders

The program could help Lucid juice delivery numbers before the year's end as it ramps up production of its flagship Air sedan.

www.businessinsider.com

I don’t know. I think it’s cool they want to give employees a stipend to help pay for a car many of them probably couldn’t otherwise afford.

There’s probably also a big tax difference for Lucid between offering this to an employee vs just discounting the car to customers.

I know at Apple, employees get discounts, but they are usually barred from using those discounts until a certain number of months after customers have had access if it’s a high-demand item. Given they want to move cars before the end of the year, I can see why Lucid would do this now, though. Also, maybe assuming many of these folks go for AGT, which are just sitting in inventory right now, it probably won’t have a huge impact on deliveries to customers of Pure and Touring?

Another thing to consider, delivering to an employee cuts back on needing to have a DA spend hours with the customer on the whole introduction thing.

 

[MorganB]

It is also paid out in 500$ bonuses every two weeks on their paychecks so 18 months to pay it out. I suppose on the balance sheet the car is still purchased at full price and its on the Grand Touring.

 

[MHDave]

A benefit to employees like that is taxable to the employees and an expense to the company's books. Give an employee a $1,000 value item for free, but it has to go on the reported earnings of the employee as if the company paid them that $1,000, so if their tax rate is 20%, they're paying $200 in taxes, effectively getting the $1000 item for $200. Still a good deal to the employee.
As for the company income statement, bottom line will reflect the actual price paid for that discounted car.
Disclaimer: I'm not an accountant but do have experience in employee discounts and income statements.

 

[HC_79]

$18K + $7500 tax rebate...... not a bad employee perk at all. The only downside is if it's at the full price it effectively brings the car down what it was originally priced at when first launched, but regardless it's still a decent perk.

 

[joec]

$18K + $7500 tax rebate...... not a bad employee perk at all. The only downside is if it's at the full price it effectively brings the car down what it was originally priced at when first launched, but regardless it's still a decent perk.

I also like the idea of more Lucid employees driving Lucids. Eat your own dog food. Employees should always be able to relate to their customers through direct experience.

 

[Bobby]

I gave my team free dentistry for 30 years….

 

[MHDave]

I gave my team free dentistry for 30 years….

Ah, but "eat your own dog food" should mean that you do your own dental work

 

[Bobby]

Ah, but "eat your own dog food" should mean that you do your own dental work

I know a guy…

 

[RM-S8]

I gave my team free dentistry for 30 years….

Where are you located?

 

[SaaSManKS]

Majority of lucid employees won’t be applicable for this incentive, inside sales reps, DA’s, service reps can’t afford a $150k car even with the incentive, that offer is primarily for management and execs who in all reality would already be able to pull the trigger. I work in tech, and if one of our inside sales reps pulled up to the office in $150k car… ummmm wut haha