Lucid (NASDAQ:LCID) stock is in full focus today, as it is the first day the company will accept reservations for the Lucid Air Sapphire. The Air Sapphire is by no means cheap, with prices starting at $249,000 in the United States. The company also says it will disclose availability of the model in other countries in the future. Furthermore, Sapphire models will be available for all Lucid electric vehicles (EVs) moving forward.
The Air Sapphire comes equipped with a three-motor powertrain that allows it to accelerate from 0 to 60 miles per hour (mph) in under two seconds. For further thrill-seeking drivers, the EV can also accelerate from 0 to 100 mph in under four seconds. The vehicle has a top speed of over 200 mph and will carry more than 1,200 horsepower.
Autoweek reports that, due to the high horsepower, the Air Sapphire will likely have a lesser range than the standard Lucid Air. The EV startup has not yet specified the range for the upcoming vehicle.
CEO Peter Rawlinson said the following about the EV:
“Sapphire represents the pinnacle of electric performance, finally achieving the performance that I’ve so long searched for […] After painstaking development work, I am able to confirm Lucid Air Sapphire has achieved a satisfactory performance, and I trust the most discerning drivers will agree.”
LCID Stock: Lucid Air Sapphire Reservations Begin Today
The Air Sapphire will directly compete with Tesla’s (NASDAQ:TSLA) Model S Plaid. For one, Lucid’s model is equipped with about 200 more horsepower than the Plaid, although the Plaid’s starting price of $135,990 is a steep discount in comparison. Furthermore, Lucid may be targeting more high-end customers than Tesla.
Lucid also disclosed that the Air Sapphire would be a “limited-production model,” although it did not say how many units it will manufacture.
On the other hand, manufacturing EVs has been a challenge for Lucid. Earlier this month, the company announced full-year production guidance of between 6,000 and 7,000 vehicles, down from the previous guidance of between 12,000 and 14,000 vehicles. At the midpoint of the figures, that represents a significant decline of 50%. The company cited a shortage of components, such as semiconductors and glass.
As of the end of the second quarter, Lucid had 37,000 vehicle reservations. It’s cash balance of $4.6 billion is also expected to fund operations until 2023. Because of that, shareholders should be open to the possibility of an equity offering.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.