Significant price drop!

[kurious]

I had to decide this last month. When I finally got the actual complete lease numbers, I determined the interest rate ("cost of money") I'd pay on the depreciation (you need their residual value to determine that) was --- 25.9%. Maybe that reflects the actual risk they're accepting, predicting the actual future value of the car in three years. Maybe that high rate reflects their opportunity cost -- the average credit card interest rate in the US right now is >20% which is mind-blowing. The $7,500 federal tax credit would only apply to a lease for me, not eligible on cash purchase. Still -- for me it was a no-brainer, paid cash.

 

[Yoruba Hacker]

I had to decide this last month. When I finally got the actual complete lease numbers, I determined the interest rate ("cost of money") I'd pay on the depreciation (you need their residual value to determine that) was --- 25.9%. Maybe that reflects the actual risk they're accepting, predicting the actual future value of the car in three years. Maybe that high rate reflects their opportunity cost -- the average credit card interest rate in the US right now is >20% which is mind-blowing. The $7,500 federal tax credit would only apply to a lease for me, not eligible on cash purchase. Still -- for me it was a no-brainer, paid cash.

Thanks

 

[quantum]

I’m all for this overdue promo responses to market reaction.

If 3000 more Air are sold this quarter as result, $12k x 3000 = $36M less collected. What is that in relation to $1.3B ~ $2B operation expenses loss in a year?? I’m looking at this as a droplet in the bucket for marketing expenses. Already spent so much on AMP-1 & AMP-2 and showroom, better get the words out. Reading all the new insecure Tesla bulls non-stop attack on Lucid in “X” platform is so satisfactory. Bad publicity from Elon fanboys is better than no publicity.

Tesla fanboys are the WORST! They spread hate on anything non-Tesla. Primary reason I will NEVER buy a Tesla again!

 

[hydbob]

Tesla fanboys are the WORST! They spread hate on anything non-Tesla. Primary reason I will NEVER buy a Tesla again!

Can we not make everything about Tesla?

 

[xponents]

Tesla fanboys are the WORST! They spread hate on anything non-Tesla. Primary reason I will NEVER buy a Tesla again!

Eh, I dont really know about that. Usually, their forums are pretty welcoming of other vehicles, and they do recognize the weaknesses.
Only some hyper fans are bad. The rest are pretty chill.

 

[JillyBean]

Tesla fanboys are the WORST! They spread hate on anything non-Tesla. Primary reason I will NEVER buy a Tesla again!

You seem to spread plenty of HATE in every post regarding Tesla……. Let it go it’s not worth it

 

[joec]

Let's get this thread back on topic, please. Next mention of anything other than LUCID's price drop, and we're locking it.

 

[Volund]

Speaking of price drop. See the stock? But I guess it was expected as there's so many cars on the lot

 

[xponents]

Speaking of price drop. See the stock? But I guess it was expected as there's so many cars on the lot

And also the fact that the earning call is tomorrow, maybe they anticipate lower numbers?

 

[Tesla2.0]

Speaking of price drop. See the stock? But I guess it was expected as there's so many cars on the lot

Its broader EV market is in sell off. I think some dark cloud is forming. Tesla CFO suddenly stepped down after NHTSA and Reuter scandal. Embrace impact starting from market leader.

Some lies cannot be covered by paper.

 

[des16]

I got an email this morning about a significant price drop on my order that will show up in my portal within the next few days. Out of curiosity I checked the currently or soon to be available cars to get a hint of what might be in the offing and sure enough there was a very significant change that occurred this morning. They are now offering a nearly $12,000 price drop on cars with DD Pro & SS Pro and a nearly $3,000 drop on more base level equipped cars. This price drop is for loan & cash deals, but there are also more favorable lease deals now available. A cash deal was always my intention.

I would probably grab one of these deals, but I'm waiting for the impending trade-in program which should be occurring in the near future.

I also received this message. But there is no change in the price. I called and they said they had no idea when or whether the price of my Pure AWD would be reduced. I have legacy pricing, so maybe they will not reduce the price of my car.

Also, in this same thread someone else remarked that:
I don't think that is correct. As long as someone had a binding agreement before Aug 15 2022, you can claim $7500 tax credit in your federal returns for 2022 either in initial filing or through modification of tax returns if you have already filed. I think this issue was discussed at length in other threads. There was no restriction around when the delivery was taken. The language around take delivery by Dec 31 2022 was removed by IRS in guidance they republished in march 2023.

This is also my understanding, and consequently since I have one of the "binding agreements," I presume I am eligible to amend my tax return. Is there any news or updates on this expectation.

One final issue is that I want to lease the car. My problem is that I've asked them for the money factor and residual. They have not provided me this information. I may have missed it on their website. I have never leased a car without these figures being provided. I am hoping someone can assist me here, and that it is my mistake not finding it. But at this point, the lease terms do not seem very good, to put it mildly. And also, it is not clear that IF they reduce the price of my car, as promised, they will use that purchase price in their lease calculations. It is frustrating since no one at Lucid gives me a straight answer on any of these issues. Consequently, it looks less likely I will buy/lease a car. Disappointing.

 

[xponents]

I also received this message. But there is no change in the price. I called and they said they had no idea when or whether the price of my Pure AWD would be reduced. I have legacy pricing, so maybe they will not reduce the price of my car.

Also, in this same thread someone else remarked that:
I don't think that is correct. As long as someone had a binding agreement before Aug 15 2022, you can claim $7500 tax credit in your federal returns for 2022 either in initial filing or through modification of tax returns if you have already filed. I think this issue was discussed at length in other threads. There was no restriction around when the delivery was taken. The language around take delivery by Dec 31 2022 was removed by IRS in guidance they republished in march 2023.

This is also my understanding, and consequently since I have one of the "binding agreements," I presume I am eligible to amend my tax return. Is there any news or updates on this expectation.

One final issue is that I want to lease the car. My problem is that I've asked them for the money factor and residual. They have not provided me this information. I may have missed it on their website. I have never leased a car without these figures being provided. I am hoping someone can assist me here, and that it is my mistake not finding it. But at this point, the lease terms do not seem very good, to put it mildly. And also, it is not clear that IF they reduce the price of my car, as promised, they will use that purchase price in their lease calculations. It is frustrating since no one at Lucid gives me a straight answer on any of these issues. Consequently, it looks less likely I will buy/lease a car. Disappointing.

If you are leasing, then yes you can get the credit no matter what.(https://www.caranddriver.com/news/a44131850/leasing-an-ev-tax-credit/)
If buying, then the binding agreement sadly means nothing. It was later reworded as the binding deposit had to be a certain percentage of a car's price.(I think it was 10? Not sure..)

 

[Bobby]

And also the fact that the earning call is tomorrow, maybe they anticipate lower numbers?

It’s today.

 

[xponents]

It’s today.

Technically yes, but it will only affect the stock prices of tomorrow. Gravity news would be much welcomed, that would probably ease the blow of deliveries/the price drop.

 

[Bobby]

Technically yes, but it will only affect the stock prices of tomorrow. Gravity news would be much welcomed, that would probably ease the blow of deliveries/the price drop.

That’s not what you said. You said “the earnings call is tomorrow..”

 

[xponents]

That’s not what you said. You said “the earnings call is tomorrow..”

Fair play, didnt mean to word it like that. Sorry!

 

[Viking]

I'm wondering why the lease payments are not reflecting the price cuts for the "Pro Credits"? It's odd to see the same price for two cars, but different lease payments. I was looking at a Pure 19" wheels, Fathom Blue. With DD and SS $84,775, lease $760/mo. Another with DD Pro and SS Pro $84,775, lease is $809/mo. Is the reason that they don't want to give you both $7,500 reduction and Pro Credits in the lease? Hopefully the lease will be adjusted to include the Pro Credits.

 

[Bobby]

I'm wondering why the lease payments are not reflecting the price cuts for the "Pro Credits"? It's odd to see the same price for two cars, but different lease payments. I was looking at a Pure 19" wheels, Fathom Blue. With DD and SS $84,775, lease $760/mo. Another with DD Pro and SS Pro $84,775, lease is $809/mo. Is the reason that they don't want to give you both $7,500 reduction and Pro Credits in the lease? Hopefully the lease will be adjusted to include the Pro Credits.

I believe in the literature it says that the Pro credits are for cash and financed buys only. I don’t believe it applies to leases.

 

[BobFM]

I believe in the literature it says that the Pro credits are for cash and financed buys only. I don’t believe it applies to leases.

I think that's right. For reference, here's the quoted language:

"Customers paying with cash and loan will receive an additional $11,900 USD Pro Credit applied at signing. Must take delivery within 7 days of vehicle being ready for delivery."

 

[Viking]

I believe in the literature it says that the Pro credits are for cash and financed buys only. I don’t believe it applies to leases.

I agree that is true today. However, I was just wondering why make this exception for a lease? It certainly makes the whole deal less attractive for those considering a lease.