Lucid Group mentioned Thursday that patrons of sure variations of its expensive Air electrical luxurious sedan will probably be eligible for a $7,500 “credit score.”

However that credit score will probably be paid by Lucid, not the U.S. authorities.

Lucid mentioned that prospects who purchase Air Touring and Air Grand Touring fashions in “sure configurations” earlier than March 31 will probably be eligible for the $7,500 low cost.

The novel twist on discounting follows value cuts by EV rivals Tesla and Ford Motor. Each minimize costs to make extra of their EVs eligible for brand new federal tax credit, which can be found on sure U.S.-built electrical automobiles underneath $55,000 and electrical vehicles and SUVs priced underneath $80,000. (Tesla barely elevated a few of its costs final week after the federal government clarified the credit score guidelines.)

Analyst have expressed considerations that an EV value battle may very well be brewing within the wake of the strikes by Tesla and Ford.

The Lucid Air is inbuilt Arizona, however at a beginning value of $87,400 it is too costly to qualify for the federal tax credit. The trims that Lucid is discounting are even pricier: The Air Touring begins at $107,400; the Air Grand Touring at $138,000.

“We predict our prospects nonetheless deserve a $7,500 credit score for selecting an EV,” mentioned Zak Edson, Lucid’s gross sales chief.

However Lucid’s true motivation may be extra about clearing out stock. As of Thursday morning, firm’s web site listed 15 Air Grand Tourings and 7 Air Tourings obtainable for quick supply.

Lucid will report its fourth-quarter and full-year outcomes after the U.S. markets shut on Feb. 22. The corporate’s inventory is up greater than 68% up to now this yr, giving it a market worth of about $19.38 billion.