Electric vehicle manufacturer Lucid is looking into raising prices for future vehicles due to rising inflation. The move comes after EV rivals Tesla and Rivian have announced price hikes of their own.
Lucid CEO Peter Rawlinson told Reuters at SXSW on Thursday that it is "an inevitability" that the company will have to review prices of upcoming vehicle models due to rising material costs, and that it would be "absolutely foolish" to say prices will never change. Rawlinson said the potential price hikes will not affect customers who have already made reservations to purchase Lucid vehicles. (Rivian might be taking notes.)
It is currently unclear how much the prices could change, and when changes might go into effect. Lucid did not immediately respond to request for comment from Protocol.
In February, Lucid had to cut its 2022 production targets to between 12,000 and 14,000 vehicles, down from its original plans to manufacture 20,000, due to "extraordinary supply chain and logistics challenges." Rawlinson told Reuters that the company is having issues getting components like windshield glass, carpeting and exterior trim parts, but doesn't want to sacrifice quality in the long term to deliver in the short term.
"I'm super frustrated because we're not gated by silicon chips, we're not gated by our ability to make electric motors," Rawlinson told Reuters.
Lucid isn't the only electric carmaker getting squeezed by supply chain issues. Earlier this month Rivian announced a price hike for both its truck and SUV, including those that were preordered, but reversed the decision for early reservation holders two days later after major backlash from customers and threats of mass cancellation of preorders. Rivian CEO RJ Scaringe also blamed the price increase on the rising cost of manufacturing materials due to inflation. Tesla also jacked up its prices twice in the past month, with increases between 5% and 10% across its entire range due to the surging cost of nickel and other materials.