SELLING AIR.

By Peter M. DeLorenzo

Detroit. It is becoming readily apparent that the denizens of Silicon Valley who covet becoming players in the automobile business all have a distinguishable – albeit fatal – flaw. They firmly believe that their brilliance will overcome all obstacles, that their mental acuity and visual clarity lies just beyond us mere mortals, and that the sheer force of their will guarantees a level of success only dreamed about by countless other automotive dreamers that came before them.

I have, of course, seen this before. The “Smartest Guy (or Gal) In the Room” syndrome is not only alive and well in this business, it’s thriving. From Detroit to auto centers around the globe, it’s a particular affliction that churns and burns white hot. The most acute level of this syndrome rises to “Unctuous Prick” status, a stratum reserved for such luminaries as Sergio, “Captain Queeg” Akerson and St. Elon. But there’s a whole new cadre of future alumni of Unctuous Prick University emerging – some practicing right here in the Motor City – and unremarkably enough, they’re finding purchase in Silicon Valley.

The latest spear carrier for the “Smokin’ UPs” is one Peter Rawlinson, the ex-Tesla operative who is now CEO of Lucid Air, a startup BEV company that’s promising to be the auto industry’s next world beater by offering a seductive combination of performance, range and pure unadulterated brilliance sure to humble every other car company around the world.

To say that a giant, unending reserve of hubris is part and parcel of the new UP mindset goes without saying (and we can all thank St. Elon for unleashing that “holier than thou” mindset on this business). But what Lucid is promising is purposely designed to make mere mortal car companies cower in fear, that to keep continuing down their desultory path will be futile, tragic and ultimately unrewarding. 

What is Lucid boasting? A new $700 million factory in Arizona where it will build the Air Dream Edition, the ultra-luxury launch sedan that promises to be an engineering tour de force. It claims to deliver over 1000HP, a zero-to-60 mph time of around 2.5 seconds and an eye-popping range of 517 miles on a single charge. But that’s not all. Lucid is saying that the Air Dream Edition’s 900-volt electrical system can be charged at the rate of 20 miles per minute. Needless to say, these are all benchmark numbers, at least on paper.

Lucid is promising that the Air Dream Edition is jam-packed with a level of technology that no one in this business has ever seen or thought of before. But then again, this is also consistent with the UP/Silicon Valley mindset: if they didn’t think of it then it can’t possibly have existed before, or anywhere else for that matter. Remember, their vision is absolute, their brilliance is unquestioned, and the rest of us will have to be content with living on the crumbs of their residual thoughts. 

And how will these super BEVs reach the public? Lucid plans around 20 “studios” and an online presence where the eager populace will be allowed to investigate becoming a part of the sure-to-be “Lucid Cult” whereupon all rational thought is abandoned by the eager early adopters so that they can bathe in the glow of Lucid’s brilliance.

But the future Lucid-worshipers are going to be paying a heavy price for the chance to be in “the club.” And even though the following numbers are projections and should be taken with a tour of the vast underground salt mines in southeast Michigan, they expose the UP mindset to a tee: We can charge through the nose, because bathing in this kind of unbridled brilliance and traveling on this rarefied road comes with a substantial toll. After all, not just anyone can be a part of “the club,” and if you want to the be first on the block to have a Lucid, it will cost you, dearly. 

And this is underscored by the fact that the Lucid Air Dream Edition – scheduled to arrive next spring – is projected to cost $169,000. The Air Grand Touring, due to arrive next summer, will cost $139,000. The Air Touring – at $87,500 – is slated to arrive one year from now. The plain old Air is promised for some time in 2022, at $80,000. (It’s funny, but the “standard” Air being two years away is telling: I predict it won’t appear – if it appears at all – before 2024.)

Needless to say, I remain heavily skeptical on the timing of the Lucid product cadence, because it’s based on the specious notion that absolutely nothing will go wrong, that the countless engineering details will unfold without problems, and that getting the production process off of the ground flawlessly will be a fait accompli. As anyone in this business knows, it rarely happens that way – as in never. There will be a long list of unforeseen issues and major problems to deal with, and if the launch date of the Air Grand Touring slips, I will not be surprised in the least.

None of this Lucid business – or even its existence – is guaranteed, of course, much to the chagrin of the shills who are already beating the drum on Lucid’s behalf. Because being The Greatest Thing Since Sliced Bread remains a fleeting reality in this business. One moment you’re The Future, the next moment you’re an afterthought, and the fall can take place in the proverbial blink of an eye.

It’s ironic, because “Selling Air” has been a time-honored tradition in this business, especially with marketers here in the Motor City. It’s a tradition that suggests that when you don’t have anything to sell, you make it up as you go along, which is where the concept of “Selling Air” came from in the first place.

In Lucid’s case, even though “Selling Air” takes on an entirely new dimension, the time-honored realities that have vexed this business for well over a century are bound to raise their ugly heads.

And that’s the High-Octane Truth for this week.