This article examines why Lucid Motors’ insistence on direct-to-consumer sales may be holding the company back, and how embracing luxury auto dealers could have been the game-changing move that set it apart in the crowded EV market.
Direct Sales: The EV Startup Status Quo
In today’s electric vehicle world, one business model reigns supreme: direct sales. Made famous by Tesla, this approach has become gospel for every EV newcomer, from Rivian to Polestar. It’s pitched as the ultimate disruptor—cutting out traditional dealerships, keeping control of the customer experience, and pocketing more margin. For startups, this route feels like a universal truth, a rite of passage as sure as a “Your call is important to us” message on a support line.
Lucid Motors, from its earliest days, seemed determined to follow this template. Its pop-up stores, branded merchandise, and sleek test drives echoed everything that had come before. But as industry veterans know, sometimes the most disruptive move is the one everyone else avoids.
The Case for Dealers: Why the Old Model Still Works
What if, instead of chasing Tesla’s playbook, Lucid had done the unthinkable—partnering with America’s best luxury auto dealers? In the world of premium car sales, dealerships aren’t the tired relics they’re made out to be. They’re complex, highly entrepreneurial businesses run by smart, driven people. While they do take a cut of sales, their experience, networks, and customer service skills often drive higher volumes and profits than startups can achieve with inexperienced in-house teams.
Dealers understand local markets. They know how to handle logistics, trade-ins, and the high expectations of luxury buyers. Most importantly, they have the resources and drive to deliver results—something Lucid’s direct-sales approach has struggled to match.
The Missed Opportunity: Disruption by Doing the Opposite
If disruption means breaking from the pack, what could be more disruptive for a modern EV startup than adopting the dealership model everyone else is abandoning? Imagine Lucid giving exclusive rights to the nation’s top 25 luxury dealers. This approach, ironically, would have been the true innovation—a new kind of partnership that married Lucid’s technology with the retail muscle and customer care expertise of established luxury outlets.
Yes, working with dealers introduces complexity and slices into per-car revenue. But the cost is offset by the efficiency, volume, and brand-building that only seasoned dealers can deliver. Mall leases, training, and running retail teams aren’t simple either. Many of Lucid’s current headaches—sluggish sales, limited reach, customer support gaps—stem from inexperience, not the absence of middlemen.
Lessons from Lexus: The Power of Strategic Partnerships
There’s precedent for this kind of move. When Lexus entered the US market in 1989, it didn’t sell direct. It built a network of the best luxury dealers in the country, upending expectations and carving out a market position that few “new” car brands have matched in decades. The Lexus playbook shows that working with expert partners, rather than going it alone, can lead to lasting success.
What Lucid Still Hasn’t Realized
Lucid built an exceptional electric car, but clinging to the direct-sales model may be the very thing holding it back from the mainstream. With founder Peter Rawlinson now departed and the company’s sales plateaued, the wisdom of “staying amateur” in sales is clearer than ever. A top-tier dealer network could have changed the game—reaching luxury customers faster and more effectively than any mall store or pop-up shop.
True disruption doesn’t always mean breaking away from the past. Sometimes, it means rethinking what everyone else has come to accept—and having the courage to go the other way.
Could Lucid Still Make the Switch?
Lucid’s mission is to “drive the world forward” with innovation. The next, boldest move might not be more technology or a flashier retail experience, but a willingness to do what no other EV startup dares—invite the pros in, and let them work their magic. In the automotive world, that would be the real revolution.
