Is a Lucid EV Truck On the Way?

Many investors have wondered if a Lucid (LCID -3.32%) electric pickup truck is on the way. After all, the electric vehicle (EV) maker has a well-received Air EV sedan and an upcoming Gravity EV SUV, so why not a pickup? Ford, Rivian, General Motors, and Stellantis, among others, all have EV trucks on the road, or soon to be. However, if recent hints hold true, don’t expect a Lucid EV truck anytime soon, and there’s a good reason behind it — for now.

Conventional wisdom

If you’ve been invested in the automotive industry, conventional wisdom tells us that trucks drive big bucks for the automotive industry, and that’s absolutely true. The dirty little secret is that it costs only slightly more to develop and produce a truck compared to a sedan, and the former can drive price tags two or three times higher.

Trucks are so lucrative that Detroit automakers have made their names by producing and selling hundreds of thousands of them annually. The margins are great, and Ford went as far as ending the production of all sedans other than the iconic Mustang in the U.S. market.

So why wouldn’t Lucid make an EV pickup truck when the competition seemed to jump at the opportunity?

Upside down

The reason is that EVs turn conventional wisdom for these pickup trucks upside down. Lucid’s CEO, Peter Rawlinson, said, “It’s very tough to make an electric pickup work today,” before adding, “not one that’s usable and cost-effective.”

The problem is that pickup trucks require much larger battery packs, which remain the largest cost component of an EV. No longer are these larger vehicles only slightly more expensive to build, and the cost of larger battery packs erase the traditional gasoline-powered-truck margins that Detroit automakers have thrived on for decades.

It’s incredibly difficult to turn a profit, or even a gross profit, when massive battery packs on the market — which can reach up to over 240 kWh battery packs for trucks — can cost around $50,000. If consumers opt for a smaller, cheaper battery pack, the towing power and range is reduced.

Improved efficiency, smaller trucks, lighter trucks, and other innovations could make EV trucks a little more compelling, but there needs to be significant improvement in cell chemistry to make them more lucrative for manufacturers.

What’s Lucid’s answer?

Lucid CEO’s answer was a hard no, “I don’t want Lucid to start thinking about a pickup.” So, then, what is Lucid’s answer to the current situation otherwise?

The answer appears to be a line of more affordable vehicles. We already knew about the future plans to launch a more affordable midsize EV SUV around $50,000, aimed at Tesla‘s Model Y territory. However, until recently, we didn’t know that Lucid had more in store for the market.

Lucid is planning a line of more affordable vehicles that will be powered by the company’s new Atlas drive train, which is aiming to be smaller and more efficient than that of Lucid’s competitors. The platform will enter production in late 2026 and it will power a crossover EV SUV, another electric sedan, and a third yet-to-be-confirmed model — but it won’t be a truck.

What it all means

Conventional wisdom would tell you that Lucid is missing an opportunity to match Ford, Rivian, GM, Stellantis, and other carmakers’ EV truck offerings. That isn’t the case, at least for the moment, with current battery pack prices. For now, Lucid is focused on unleashing its Atlas powertrain, delivering additional models to its lineup, and bringing prices down closer to a mainstream consumer’s budget. In time, these vehicles should boost sales, improve scale, and give reasons for Lucid investors to be optimistic for the future.