Lucid Lowers 2025 Production Forecast Due to "Challenging Economic Conditions"

SadaNews - Lucid Group has lowered its forecast for electric vehicle production for the entire year, becoming the latest automaker to scale back its ambitions for 2025.

The company announced in its second-quarter earnings statement on Tuesday that it now expects to produce between 18,000 and 20,000 electric vehicles in 2025, down from a previous forecast of 20,000 vehicles.

While the company did not immediately specify the reason for this adjustment, Chief Financial Officer Tawfik Bouchaib mentioned in the statement that the company faced a "challenging macroeconomic environment" during the last quarter.

Tariff and Legislative Pressures Threaten the Electric Vehicle Sector

Automakers worldwide are suffering from rising costs due to tariffs imposed by the U.S. President Donald Trump.

Electric vehicle companies are also under additional pressure due to efforts to scale back the strict fuel efficiency rules in the United States, which threatens the demand for regulatory credits that these companies sell to other manufacturers.

Last month, Tesla warned that this situation would negatively impact its revenues and profits.

Revenues Below Wall Street Expectations

Lucid reported an adjusted loss of 24 cents per share in the second quarter, compared to analysts' average expectation of 22 cents. Revenue was approximately $259 million, which also fell short of Wall Street expectations.

These results come as Lucid prepares to launch a self-driving taxi project in collaboration with Uber and the startup Nuro specializing in autonomous vehicles starting in 2026.

The partners plan to deploy 20,000 robotaxis over a six-year period, with Uber investing $300 million in Lucid, partly to fund production line upgrades that will allow for the integration of Nuro's technology into Lucid's electric Gravity model.