EV startup Lucid undercuts Tesla Model S with a car that can go 5 miles farther for $12,000 cheaper

• Lucid Motors released new details about the Air Pure, its cheapest model to date.
• It'll offer more range than Tesla's flagship Model S for $12,000 less.

One of the most promising new electric car startups took a shot at Tesla by unveiling a model that's cheaper than Elon Musk's flagship Model S — and can drive farther on a charge.

California-based Lucid Motors revealed new details on Tuesday about the Air Pure, the cheapest version of its debut sedan. The electric luxury car earned a range rating of 410 miles from the Environmental Protection Agency, squeaking past the Model S, which is rated at 405 miles.

That's the range of the all-wheel-drive Air Pure, which Lucid says will hit streets by the end of 2022. It costs $92,900, around $12,000 less than the $104,990 Model S.

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A cheaper, rear-wheel-drive Air Pure will go on sale next year for $87,400.

For years, Tesla reigned over the electric market with its exceptionally long-range cars — until Lucid came along.

The Model S was the longest-range EV you could buy until the Air unseated it in 2021. The $169,000 Air Dream Edition blew Tesla and everyone else out of the water when it launched with a 520-mile range.

That car also bested The Model S's 1,020 horsepower by offering up to 1,111 horses.

Lucid is still a tiny player compared to Tesla, which handily dominates US EV sales and is set to sell well over 1 million cars globally this year. But Musk has been paying attention to his budding rival, which is led by the former top engineer for the Model S.

In 2020, Musk slashed the price of the Model S to $69,420 after Lucid said the Air would undercut Tesla's pricing. (Both the Model S and Air have gotten more expensive since.)

Production of the all-wheel-drive Air Pure starts in December, Lucid said. It'll have 480 horsepower and be able to add 200 miles of range in 15 minutes of charging, the company claims.