Lucid Motors is advocating for the $7,500 EV tax credit to remain in place for emerging automakers through 2026, arguing it levels the playing field against established brands. Interim CEO Marc Winterhoff emphasized fairness, noting that legacy manufacturers have long benefited from the incentive. This comes as Lucid ramps up production of its new Gravity crossover, with Congress debating the credit’s future, reports Automotive News.

Current Tax Credit Debate

Two budget proposals in Congress could reshape EV incentives. The Senate’s plan would end the $7,500 credit for all automakers within 180 days, while the House version extends it through 2026 for brands that haven’t sold 200,000 EVs. Lucid, with roughly 21,000 vehicles sold from 2021 to 2024, supports the House approach. “It’s widely known we haven’t yet sold 200,000 EVs. But many others in the past have, and they all had that credit,” Winterhoff said on the June 25 Daily Drive podcast. He argues that cutting the credit now penalizes newcomers navigating a nascent EV market.

Lucid Pushes For Ev Tax Credit Extension To Boost Small Brands Through 2026

Lucid’s Production and Market Strategy

Lucid, based in Newark, California, produces its Air sedan and Gravity crossover at its Casa Grande, Arizona, factory. The company expects to sell about 20,000 vehicles in 2025, including the Gravity, which starts at $96,550 (including shipping). Despite a slow production start due to tariff challenges and a focus on “perfect quality,” Winterhoff reported strong customer feedback: “As we speak, we’re delivering additional cars. And the feedback is phenomenal.” Lucid’s vehicles qualify for the tax credit through leasing loopholes, despite exceeding price caps.

Looking ahead, Lucid plans to launch a more affordable midsize crossover in late 2026, priced around $50,000 (before shipping). This vehicle, built on a new platform, will be followed by two additional models to boost volume. “That is the product that we are really focused on right now because that will then give us also the demand and the volume,” Winterhoff said. This strategy aims to compete in mainstream luxury segments, where affordability is critical.

Industry Trends and Consumer Challenges

Winterhoff highlighted affordability as the top barrier to EV adoption, surpassing earlier concerns about charging infrastructure. Scaling production is expected to lower prices, making EVs competitive with gasoline vehicles. “EV is the solution for the future. We are 100 percent convinced about that,” he said. Unlike legacy automakers balancing gasoline, hybrid, and EV investments, Lucid’s EV-only focus streamlines its strategy. However, Winterhoff acknowledged that incentives will eventually phase out, noting, “I mean that’s totally clear.” The EV market, still in its early stages, faces a “normal process” of adoption challenges, he added.

Economic and Regulatory Implications

Extending the tax credit could provide smaller EV makers like Lucid with a financial cushion, supporting U.S. manufacturing and job growth. Lucid’s Arizona factory aligns with domestic production goals, as Winterhoff noted: “We made that decision already years ago to actually vertically integrate extensively here in the United States.” A premature end to the credit could stifle innovation and limit consumer choice, particularly as tariffs and supply chain issues already strain the industry. For EV owners and enthusiasts, continued incentives could maintain competitive pricing, encouraging adoption during a pivotal growth phase.

The debate’s outcome will shape the U.S. EV landscape, determining whether brands like Lucid can scale effectively. With production ramping up and new models on the horizon, Lucid’s push for fairness underscores the stakes for emerging players in a rapidly evolving industry.