A battle between Lucid Group Inc (NASDAQ:LCID) and Tesla Inc (NASDAQ:TSLA) could be heating up with more affordable vehicles coming in the electric vehicle sector.

What Happened: Lucid Group is set to launch the highly anticipated Lucid Gravity SUV later this year, which could highlight the company's advanced technology and mileage range on electric vehicles.

As it looks to compete with other electric vehicle companies, existing automotive companies and EV market leader Tesla, Lucid is set to launch three affordable EVs to take on the competition.

Lucid Senior Vice President of Design Derek Jenkins said in a recent interview with CarBuzz that there will be multiple vehicles from the company as part of its mid-size vehicle launch platform.

"They're going to be younger vehicles, they're going to be more athletic vehicles," Jenkins said.

Jenkins said the three vehicles will be affordable and could help Lucid close the gap with leader Tesla.

Lucid confirmed to Electrek that there are three mid-size models in the works. According to the report, Lucid is launching the Gravity mid-size SUV to compete with the Model Y and has plans for a mass-market sedan similar to a Model 3. This leaves a third model with minimal details publicly shared.

Jenkins said in the interview that he is a fan of wagons, but called it a "dying segment," making it unlikely that a station wagon is coming from Lucid.

It's more likely that the new vehicle will have off-road capabilities, positioning it to compete with the likes of Tesla and Rivian Automotive.

"The off-road space is going to continue to morph and evolve," Jenkins said.

The Lucid design executive said an off-road vehicle could provide Lucid with the best of "two worlds."

Read Also: Lucid Q2 Earnings Highlights: Revenue Beat, EPS Miss, $1.5-Billion Financing Commitment From Saudi Investment Fund

Why It's Important: Lucid recently reported second-quarter financials and got a new cash injection that could help provide cushion for the next few years of vehicle releases.

The price of the Lucid Air has decreased on newer versions, which could boost customer demand.

The launch of the Gravity SUV serves as a real test for Lucid as it expands into a new category and competes with several market leaders.

Lucid CEO Peter Rawlinson, who previously worked at Tesla, has not shied away from directly competing with the company led by Elon Musk.

Rawlinson previously said Lucid will develop electric vehicles in the $50,000 price range that is "right in the heart of Tesla Model 3, Model Y territory."

LCID Price Action: Lucid shares are up 7% to $3.84 on Thursday, versus a 52-week trading range of $2.29 to $6.45. Lucid stock is down 6.4% year-to-date in 2024.

• Lucid Group Analysts Break Down Q2 Earnings, $1.5B Saudi Financing For EV Stock: 'We See This Capital Raise As Significant'

Image created using artificial intelligence via Midjourney.