Electric vehicle startup Lucid Group, Inc. LCID rose to prominence with its luxury Air sedan, having a range superior to Tesla, Inc.'s TSLA Model S vehicle.
Tesla's outspoken CEO Elon Musk clarified that he isn't too bothered about not being the best in terms of range.
What Happened: Lucid recently reported fourth-quarter results, showing below-consensus deliveries, and also lowered its 2022 production guidance, citing supply constraints.
One of Musk's Twitter followers reflected on Lucid's results. Tagging Musk, he stated that Lucid may have been the first to deliver an EV with a range of 500 miles, but Tesla will be the first to mass produce an EV with a 500-miles+ range.
In reply to the tweet, Musk said Tesla had the wherewithal to produce a 600-mile Model S a year earlier, but the vehicle would have had significant drawbacks.
Why It's Important: Musk's rationale is not without logic. In the quest to have the best product on one parameter, it is ill advisable to compromise on other aspects.
There is no denying of the fact that the EV arena is getting crowded. A host of nimble startups have joined the fray, giving the market leader, Tesla, stiff competition.
Legacy automakers have also embarked on the road toward faster transitioning to EVs. For Tesla, innovation, execution and quality are critical to prevent market share erosion and stay competitive.
It appears from Musk's stance that, on those counts, Tesla remains laser focused.
At last check, Tesla shares were retreating 1.49% to $851.48 and Lucid was seen trading down 3.20% at $24.19.
Photo: Courtesy of Tesla Owners Club Belgium on Flickr
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