Lucid cuts annual production forecast as global trade tensions sting
Shares of the company dropped over 10% in extended trading.
Despite seeing a rise in deliveries for its luxury electric vehicles, Lucid is navigating an uncertain time for the industry as U.S. import tariffs threaten to upend supply chains and raise the costs of vehicles by thousands of dollars.
The company has been aggressively striking deals with North American companies in order to domestically source critical minerals used in EV manufacturing amid a push by the Trump administration to reshore production and strengthen American manufacturing.
Lucid's fortunes rely heavily on the success of its newly launched Gravity SUV and the upcoming mid-size car, which targets a $50,000 price point, as the company looks to expand its consumer base.
Competition in the U.S. EV market is also stiff, with industry giant Tesla (TSLA.O), opens new tab pushing sales of its revamped Model Y, and Rivian (RIVN.O), opens new tab marketing its refreshed versions of the R1T truck and R1S SUV.
Lucid now expects to make between 18,000 and 20,000 vehicles this year, compared to its previous forecast of 20,000 vehicles.
In order to diversify revenue streams, Lucid signed a deal with Uber (UBER.N), opens new tab last month, whereby over six years, starting in 2026, the ride-hailing platform will acquire and deploy over 20,000 Lucid Gravity SUVs that will be equipped with autonomous vehicle technology from startup Nuro.
As part of the deal, Uber will invest $300 million in Lucid as the firms look to establish a foothold in the robotaxi market.
Lucid reported revenue of $259.4 million in the second quarter, missing estimates of $279.9 million, according to data compiled by LSEG.
On an adjusted basis, the company lost 24 cents per share, compared with estimates of a loss of 21 cents per share.
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