The recent announcement by Tesla to discontinue the Model S and Model X has sparked a wave of mixed reactions. While many Tesla enthusiasts lament the end of these pioneering electric vehicles, luxury EV competitor Lucid Motors is reportedly viewing this development as a significant sales opportunity.
Lucid’s Strategic View on Tesla’s Departures
The discontinuation of the Model S and Model X, particularly the iconic Model S, has been met with a degree of mourning within the electric vehicle community. The Model S, widely credited with making EVs desirable and establishing Tesla’s prominent market position, spearheaded a transformative shift in the automotive industry.
However, at its recent Investor Day in New York City, Lucid officials indicated a decidedly different perspective. They highlighted that the retirement of Tesla’s flagship sedans and SUVs presents a substantial opportunity for sales growth, backing their claims with data.
Market Opportunity: Targeting Former Tesla Owners
Lucid estimates that there were approximately 350,000 Tesla Model S and Model X owners in the United States as of January 2026. This figure, cited from data provided by the research firm S&P Global Mobility, represents a significant pool of potential customers.
As these owners consider their next vehicle purchase, particularly newer, more technologically advanced luxury EVs, Lucid aims to position its offerings as the preferred choice. The company is preparing to welcome these discerning buyers into its fold.
Navigating a Competitive Luxury EV Landscape
The path to capturing these former Tesla customers will not be without its challenges. Lucid will face stiff competition from established luxury automakers who are rapidly deploying next-generation EVs. Brands such as Cadillac, Rivian, BMW, Mercedes-Benz, and Volvo are introducing vehicles that boast fewer software glitches, extended range, faster charging capabilities, and superior overall technology.
Lucid’s Current Standing and Future Plans
Lucid Motors is actively seeking to bolster its market presence. For the current year, the company has set an ambitious production target of 25,000 to 27,000 vehicles, encompassing both the Air sedan and the upcoming Gravity SUV. These models directly compete with Tesla’s now-discontinued offerings.
The company anticipates achieving true mass-market volume only after the introduction of its smaller, more affordable Cosmos and Earth crossover models in the coming years. Tesla’s decision to cancel its longest-running models is also attributed to freeing up factory capacity for robot production, though sales figures for the Model S and X were reportedly not meeting expectations.
Lucid’s Competitive Advantages Over Tesla
Lucid believes it holds a distinct advantage in the luxury EV segment, especially when compared to Tesla. According to the same S&P Global Mobility report cited by Lucid, the Air sedan and Gravity SUV were the top trade-in choices among Model S and Model X customers in the past year.
This preference is not surprising, given Lucid’s vehicles often outperform Teslas on key specifications. Lucid models typically offer greater EPA-estimated range, significantly faster charging times, and more premium interior finishes. The Gravity SUV, in particular, was recognized with an Editor’s Choice award in InsideEVs Breakthrough Awards and is praised for its exceptional ride and handling characteristics.
Price Point and Value Proposition
Lucid vehicles also present a compelling price advantage. The Air sedan has a starting price of $71,000 before destination fees, considerably less than the Model S, which previously started at $95,000. Similarly, the Gravity SUV begins at $80,000, compared to the Model X’s starting price of $100,000.
While Tesla’s offerings included the standard Luxe Package, which provided complimentary access to the Tesla Supercharger network and the Full-Self Driving (Supervised) feature for hands-free driving, these perks do not appear to be sufficiently driving sales in the face of Lucid’s competitive advantages.
Sales Performance and Future Outlook
Lucid reported selling 10,813 units of the Air sedan last year. In contrast, Tesla sold an estimated 5,889 units of the Model S, according to data from Cox Automotive.
The Model X saw stronger sales in 2025, with 13,066 units sold, outperforming the Gravity’s 1,801 units. However, this disparity is largely attributed to Lucid’s own production delays with the Gravity. The current year is expected to provide a clearer picture of Lucid’s production capacity and market demand for the Gravity SUV.
Tesla’s Dominance vs. Lucid’s Emerging Opportunity
Despite the specific market shifts, it is important to acknowledge that Tesla remains the undisputed leader in U.S. EV sales, operating in a different market tier compared to Lucid. However, by shifting its focus away from passenger vehicles towards AI and robotics, Tesla may have inadvertently created its most significant opportunity yet for competitors like Lucid to gain market share in the luxury electric vehicle segment.