- - Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y

Erica KollmannDecember 27, 2025 at 5:31 AM

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Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y

Lucid Group, Inc. (NASDAQ:LCID) is shifting from ultra-luxury to the mass market, setting its sights on the Tesla, Inc. (NASDAQ:TSLA) Model Y with a new midsize crossover priced under $50,000.

The shift toward a more affordable model comes at a critical time, as Lucid’s new Gravity SUV faces a rocky start.

The Model Y Challenger

Internally dubbed “Project Midsize”—and potentially named the Lucid Earth—the upcoming vehicle represents a do-or-die moment for the California-based automaker as it seeks to scale beyond its niche Air sedan and Gravity SUV.

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The company confirmed on its Q2 earnings call that the crossover is scheduled for production in late 2026 and aims to capitalize on Lucid's industry-leading efficiency.

Lucid expects to deliver a range of over 300 miles using its Atlas drive unit and a significantly smaller, cheaper battery than its rivals.

Gravity SUV Stumbles

Despite glowing reviews for its 440-mile range and spacious design, early 2025 data revealed a sluggish rollout for the Gravity SUV:

Sales Lag: Reports indicated as few as nine registrations in the first half of 2025, though Lucid countered that “multiple hundreds” were in the delivery pipeline.

Production Issues: Supply chain hurdles and tariff pressures forced Lucid to trim its 2025 production guidance to between 18,000 and 20,000 units.

“I feel that it is important to acknowledge that we are not where we want to be with Lucid Gravity production relative to our target at this point in the year,” interim CEO Marc Winterhoff said on the company's Q2 earnings call.

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Stock Pressure: Lucid shares dropped more than 60% in 2025, and the company is under immense pressure to prove it can move volume.

The High-Stakes Gamble

While the $50k crossover offers a glimmer of hope for mainstream adoption, Lucid must survive the next two years.

With the Gravity still finding its footing and the company continuing to burn cash, the success of the affordable, midsize platform is a requirement for survival in an increasingly competitive EV landscape.

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This article Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y originally appeared on Benzinga.com

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Source: “AOL Money”