Shares of Lucid Group fell on Thursday after the company launched a cheaper version of its Air electric luxury sedan in a bid to stoke demand.
The stock closed down about 7% on Thursday following the news.
Lucid said it will now offer a single-motor, rear-wheel-drive version of its Air Pure sedan starting at $77,400 with 410 miles of range. That's $5,000 lower than its previous lowest-cost model, the dual-motor all-wheel-drive version of the Air Pure, which is still available.
The new single-motor Air Pure is available for order immediately, Lucid said.
Lucid's shares are down over 24% since the beginning of 2023 through Thursday's close as concerns linger about ongoing demand for the Air. While the Air has received strong reviews and can claim the longest range of any electric vehicle currently available in the U.S., it's expensive, a growing concern as consumer borrowing costs have risen and as rivals including EV giant Tesla have cut prices sharply over the past several months.
The new rear-wheel-drive version of the Air Pure is the first Lucid offering to start below $80,000. At the high end, the 1,234 horsepower Sapphire version of the Air costs $249,000.
Lucid hasn't yet released its third-quarter production and deliveries totals. It's expected to report its third-quarter financial results in early November.