Lucid Group Inc (NASDAQ:LCID) CEO Peter Rawlinson believes Tesla Inc’s (NASDAQ:TSLA) new 4680-type cylindrical cell format is not a "huge breakthrough," IEEE spectrum reported, citing the executive.

What Happened: Rawlinson believes that the larger format and new design have some advantages but it is more a “triumph of packaging” due to its tightly packed "jelly rolls" that allow more active cell material versus its surrounding casing, rather than a chemistry breakthrough.

The former Tesla employee said the benefits include reduced internal resistance and higher energy density and that's a “valuable step forward.”

Lucid uses the 2170-type cylindrical cells that are also found in Tesla’s Model 3s and Model Ys.

Tesla revealed the 4680-type battery last year at its Battery Day event and has claimed the pack will allow it to increase capacity and range by 30% without new chemistry.

See Also: Tesla's Self-Developed 4680 Batteries To Be Partly Manufactured By Panasonic

On Affordable EVs: Rawlinson sees EVs becoming more affordable in the future with prices coming down to $25,000 levels with ample charging opportunities everywhere. The Lucid CEO believes EVs will have less range 50-60 years from now as there will be less dependence on public charging networks.

Why It Matters: Lucid is among a dozen electric vehicle startups that have taken the SPAC route to go public. Rawlinson, who was previously chief engineer on Tesla's Model S, sees the Elon Musk-led electric vehicle company as Lucid's primary competitor.

Lucid expects to deliver 20,000 Lucid Air sedans in 2022 and churn $2.22 billion in sales. 

See Also: Lucid Motors Sees Saudi Arabia As Second-Largest Market After US For Luxury EVs

By 2025, the company expects to ramp up deliveries to 135,000 vehicles and generate more than $13.98 billion in revenue. By then, the company expects to have introduced electric sports utility vehicles and other models in its lineup. 

Lucid has forecast a run-rate production of over 500,000 units by 2030.

Price Action: LCID shares closed 1.57% higher at $37.12 a share on Thursday.

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Photo: Courtesy of DCS5 via Wikimedia