Case study: The article below from AP News compares Model S (Teslas premium model) and Lucid Air, the flagship car of Lucid Groups, a Saudi Arabia PIF (public investment fund) majority-owned company. The idea notes that Lucid Air has achieved levels of differentiation, based on quality and innovation, that exceeds Tesla. The CEO of Tesla, Elon Musk, predicted last year that Lucid is headed for bankruptcy unless the company cuts costs drastically and becomes more efficient. See the link below.

Links:

https://apnews.com/article/business-2e5dbd9df3495c9d32272b3d3cfc271b

https://insideevs.com/news/592252/elon-musk-says-lucid-rivian-are-tracking-toward-bankruptcy/

Question1. You have learned about the concept of crossing the chasm. Since growth is accelerating in the EV industry, what are the strategic implications of this concept for Lucid? What should the company do to cross the chasm?

Question2. Lucid follows a differentiation strategy and offers premium products. Do you think the company should focus on efficiency? What are some of the actions that the company can take to improve efficiency?

Note: The answer should be related to strategic management.