Lucid Motors plans electric vehicle production early 2019

Lucid Motors displayed its luxury electric sedan, dubbed the Lucid Air, and showcased another test vehicle at the New York International Auto Show.

The Silicon Valley start-up, whose leaders include former Tesla Model S engineer Peter Rawlinson, announced in 2016 that it would construct a $700 million plant in Arizona early this year, USA Today reports.

AutoPacific analyst Dave Sullivan says Lucid’s prototypes “have a more production-intent feel” and “their management team feels more cohesive,” yet challenges remain.

“Long-term chances for success are likely to be small because just as Lucid intends to start production, the US and German manufacturers will open the floodgates on all of their electric vehicles,” Sullivan says. “And they are the ones who already have a service and distribution network.”

Lucid Motors says its Lucid Air will have “up to” 400 miles (643.7km) of battery range and 1000 horsepower, which would make it one of the most powerful street-legal vehicles in the world. The base model would start at $52,500 (NZ$ 74,637.50) after federal tax credits, offering 400 horsepower and battery range of 240 miles (386km).

Lucid now says it will start manufacturing in the first half of 2019, with plans to assemble 10,000 vehicles within its first year in operation and 130,000 units annually by 2022.

The company says its investors include American investment firm Venrock, Japan-based Mitsui and China-based Tsing Capital.

Lucid spokeswoman Amanda Hundt says the company has raised three rounds of funding worth “hundreds of millions” and is seeking a fourth round of financing.

She says the company will sell directly to consumers — a strategy similar to Tesla’s.

“We will start by opening retail stores and build up to a steady rollout plan throughout 2018 and beyond,” she says.