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The Lucid Air Dream Edition R’s first in-depth review reveals the car is a stunner
Lucid frontman Peter Rawlinson has spent plenty of years in the electric vehicle realm, so he definitely has an idea of what goes into creating a fast, luxurious, and effective electric car. Prior to his time at Lucid, Rawlinson was one of the key members of Tesla’s Model S development team back in the early 2010s, before leaving the company to pursue his own interests, eventually landing at Lucid Motors. As the electric vehicle sector continues to develop quite nicely in the grand scheme of things, with both exclusively electric companies and legacy automakers all contributing to the sustainable energy transition, Lucid is set to deliver its first vehicle, the Air Dream Edition sedan, later this year, and Motortrend got an in-depth and exclusive look at the car that could quite possibly be the king of the hill when it enters the market.
Design
One of the sharpest vehicles in the automotive sector, the Air Dream Edition was outfitted in Eureka Gold for this breakdown by Motortrend. Reminiscent of the Citroën DS redesigned for Blade Runner, the car is simple yet futuristic in its design. It’s a long sedan, and in photographs almost reminds me of an older Ford Taurus in its “boaty” nature. However, it is much more pleasing to the eye, in my opinion. (The Ford Taurus was my second car. I drove it to class in college, and Lord, I hated that thing.)
Credit: MotorTrend
Sleek and luxurious, the reviewers were more particular to this interior than that of the Tesla Model S, stating that “every Tesla since day one has seemingly shipped without a finished interior, Lucid not only crafted a perfectly wonderful luxury-car cabin, but it also smartly avoided the screens über alles aesthetic that plagues cars like the Mercedes EQS.” Truth is, the Air interior is still relatively simplistic, and while it does have a few more bells and whistles than the Tesla Model S, it is not all that different other than an extended instrument cluster, a repositioned center screen, and more material options.
Credit: MotorTrend
Performance
The Air Dream does not drive like a Lotus, which Rawlinson wanted when he designed the car: the look of a Mercedes with the ride of a Lotus. In fact, Jonny Lieberman, who wrote MotorTrend’s review, said it’s more like a Nissan GT-R. It has great handling, and with 933 horsepower, it’s extremely quick. Couple these performance tidbits based on Lieberman’s experience with the already stunning design and comfortable interior, and you have a car that is sure to appeal to many.
Carving turns in the Air was one of the highlights of the test drive. “I assumed the Air Dream Edition R would be decent enough to drive around big sweepers, but about 10 miles into our run up Angeles Crest Highway, I discovered the car enjoyed being manhandled through tight corners,” Lieberman wrote. The harder he drove the car, the better it performed, making it an ideal choice for a scenic joyride through winding and curvy rods, especially with the all-wheel-drive system to help navigate through those corners.
Not only is the car fun to drive, but it’s fast too, even if it’s over 5,000 pounds. Impressive with this pre-production Air model that was available for the test drive, the car will only improve as Lucid begins cranking out production models of the vehicle soon. This is where Lieberman expects Lucid to improve on an already great car. The front end seemed to be a little too free for his liking, while the back tires provided sufficient grip and maneuverability through tight corners. According to Lucid’s Director of Chassis and Vehicle Dynamics David Lickfold, the front spring rate will be reduced by 10% before production begins. The anti-roll bar will be stiffened for more support and stability, and active dampers will get an adjustment, too, providing an even smoother ride than already given.
Credit: Motortrend
Three Drive Modes
The Air will come with three available drive modes, as Lickfold was curious about the condition of the roads that the Air was being tested on by MotorTrend. He suggested Lieberman leave it in Swift Mode, the second option, between Smooth and Sprint.
- Smooth Mode: Motors limited to 670 horsepower, softens dampers and brake pedal feel, the steering wheel is “free” feeling
- Swift Mode: Motors limited to 670 horsepower, much firmer feel than smooth mode, suitable for quicker driving on winding roads, but still holding back some performance
- Sprint Mode: Motors can reach full 933 horsepower potential, dampers are very hard, extremely sporty driving feel with “Tesla Plaid-like battery conditioning” for battery performance
Swift Mode brings out about 75% of the total power output, according to Emad Dlala, Lucid’s Senior Director of Efficiency and Energy Technology.
Credit: MotorTrend
Efficiency, Range, Battery Pack
The Air Dream Edition R is supposed to have 500 miles of range at a minimum, and the EPA will either confirm or deny this when it certifies the car in the coming months. MotorTrend decided to test the range on its own terms with a drive from Los Angeles to San Francisco, close to 350 miles. Not only did this drive provide some insight on how the range of the vehicle would be, but it would also give the reviewers an opportunity to get a look at what the vehicle would be like in its most frequent way of travel: abiding by speed limits and traffic rules during highways, while having to navigate through traffic and provide the driver and passengers with safety, but also entertainment and comfortability through the lengthy quest up the California coast.
It’s a smooth ride, there was wind noise, a common complaint among EVs due to their lack of an engine to drown out road sounds, but tire noise was minimal, Lieberman said. The car sat on Pirelli P Zeros, specifically designed for Lucid. After 205 miles of driving, the range of the vehicle had gone from 503 miles to 286, so there was slightly more energy usage through the 205 miles of driving as 217 miles had been subtracted from the range since the start of the trip. The additional range usage was due to air conditioning, so Lieberman adjusted the temperature from 69 to 71 to see if there was any impact.
The team arrived in San Francisco with 69 miles of range remaining, not needing to charge up at any point during the drive.
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Credit: Motortrend
While Lucid still remains very vague in terms of when the Air Dream Edition will begin deliveries, the company still expects them to occur this year. With its unique design, different drive modes, impressive range, fast performance, and sporty but luxury interior, the car is certainly one of the most-anticipated EVs in the last several years. The car, along with Tesla’s vehicles, continues to chip away at the idea that range anxiety is an issue and EVs are not fast and fun. The Air is its own vehicle, and it’s important to not count it out before it hits the road, especially as Lieberman, who has reviewed hundreds of vehicles, was quite impressed by the Air Dream Edition.
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SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
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SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
