Drivers are being 'ill-served by underwhelming EVs,' says boss of Tesla rival Lucid

• The CEO of Tesla rival Lucid had a scathing assessment of the EV market in the US.

• Peter Rawlinson said most electric cars in the US "frankly suck" and were underwhelming.

• He said Chinese EV firms were ahead of their US rivals in some areas, but added they benefit from an "uneven playing field."

The boss of one of Tesla's biggest rivals thinks he knows why the US public isn't being won over by EVs.

Peter Rawlinson, the CEO of Lucid Motors and a former VP of engineering at Tesla, spoke on the Cars and Culture podcast last week that most of the electric vehicles on offer "frankly suck."

Asked whether EVs in the US have a perception problem, Rawlinson said the problem was "not perception, but reality."

"I think many people have driven EVs that frankly suck. I know because I drive all the competition," he said.

"I think that the American public has been ill-served by underwhelming EVs," Rawlinson added.

Rawlinson, who previously worked for Elon Musk and helped build Lucid, became CEO of Lucid in 2019.

The EV startup is gearing up to launch its new electric SUV, the $94,900 Gravity, with production expected to start by the end of the year.

Lucid has touted its industry-leading technology but continues to be stuck in the so-called EV "valley of death."

The company reported revenues of $200 million in the most recent quarter and a net loss of $992 million. In August, it secured another $1.5 billion in investment from Saudi Arabia's Public Investment Fund, its majority shareholder.

Meanwhile, EV sales growth in the US has slowed this year amid a dearth of affordable electric options.

According to Kelley Blue Book, the average price of a new electric vehicle in the US in September was $56,000, compared to $48,397 for combustion-engine vehicles.

China races ahead

US automakers are grappling with the challenge posed by Chinese EV companies like BYD and Xiaomi, who have rolled out affordable electric vehicles packed with advanced technology.

While these companies are unable to sell their cars in America due to cripplingly high tariffs, they are putting Western companies under pressure in China and attracting plaudits in the US, with Ford CEO Jim Farley praising Xiaomi's SU7 EV.

Rawlinson previously described China's automakers as "years behind" the likes of Tesla in terms of core EV technology.

Speaking on the Cars and Culture podcast, he said Chinese companies like BYD were ahead of US rivals in battery chemistry and assisted driving technology — but said they benefit from an "uneven playing field" due to government subsidies.

"I think the Chinese do have a fundamental advantage because when the government says go, they all go in the same direction instead of arguing with each other," Rawlinson said.

A study from the Centre for Strategic and International Studies think tank, released earlier this year, found that China has provided at least $230 billion in support to electric vehicle makers such as BYD since 2009.

"I'd say they're still behind in terms of the core EV powertrain technology, but don't underestimate them," Rawlinson added.

Lucid did not respond to a request for comment, sent outside normal working hours.

Correction: November 13, 2024 — This article has been amended to state that the production of Lucid's Gravity SUV is scheduled to start at the end of 2024.

Read the original article on Business Insider