(Reuters) - Lucid Group cut prices of its Air range of luxury sedans earlier this week for a limited time ahead of the holiday season, amid stiff competition and slowing demand for electric vehicles(EV). High-interest rates have hit demand for EVs, and auto manufacturers, led by the world's most valuable automaker Tesla (NASDAQ:TSLA), have responded by cutting prices.
The Elon Musk-led automaker has cut sticker prices multiple times this year to fend off new lower priced electric vehicles from eating into its depleting market share.
The EV price war has forced companies to prioritize sales over margins and has brought down the average price of EVs to $50,683 in September, a report by Cox Automotive showed.
Lucid slashed the price of its Air Touring model to $87,500 from $95,000 and the more powerful Grand Touring by $10,000 to $115,600.
The Newark, California-based company also slashed the price of its all-wheel drive Air Pure to $74,900 from $82,400. The price of its latest offering, the rear-wheel drive Air Pure, remains unchanged at $77,400.
Tesla has cut the prices of its Model S premium sedan, Lucid Air's closest competitor, to $74,990.
Lucid had previously cut prices for its cars in August as the company burned through cash as it ramped up production in a tough economy.
However, backing from Saudi Arabia's Public Investment Fund has given the company, which is set to report its third-quarter results on Tuesday, a liquidity boost over some of its other cash-crunched peers.
The price cut offer will be valid till Nov 30, the company said.