Lucid has announced that it will launch its Tesla Model Y rival in two years, priced below $50,000 (£38,000).

The SUV will be based on what Lucid calls its new ‘mid-size’ platform and use the company’s next-generation Atlas motors, which major on energy efficiency. The firm claims this will allow it to offer competitive range figures despite using smaller batteries than rival electric cars.

“Our vehicles go farther with less, unlocking significant cost and mass savings as we scale,” said Lucid chief Peter Rawlinson.

As previously reported by Autocar, Lucid will also launch a saloon on the new platform. Rawlinson, who previously led development of the Tesla Model S, said Lucid’s two new cars were “overtly” Tesla competitors. 

He added: “This is the first time I’ve ever said it: we’re going to compete in that market – high-volume family car.

“And how can we compete? Because we’ve got the most advanced technology, which means we can go farther with less battery, and the battery is the most high-cost item of an electric car. So if you can go a certain distance with less battery, you can make that car more cheaply than anyone else.”

Rawlinson did not go so far as to suggest what volumes the company would target. However, Lucid has previously said its new factory in Jeddah, Saudi Arabia, is scheduled to begin full assembly of cars “after the middle of the decade”, when the new Tesla competitors will be launched. The plant, named AMP-2, is earmarked for an eventual capacity of 155,000 cars per year.

The announcement comes after Lucid recently reported a loss of almost $1.5 billion (£1.1bn) during the first six months of this year. It also announced, however, that Saudi Arabia’s Public Investment Fund had agreed a $1.5bn investment. Lucid said this gives it liquidity until late 2025.