Lucid Shares Drop 7% Pre-Market — Production Cut Amid Wider EV Pain from Trump Policies

TradingKey - On Wednesday, August 6, Lucid (LCID) fell 7% in pre-market trading, while fellow EV maker Rivian (RIVN) dropped 5%, after both companies cited the negative impact of Trump administration policies — including tariffs and the rollback of EV incentives — on their Q2 results and full-year outlook.

Lucid’s Mixed Quarter

Lucid reported Q2 2025 results after the market close:

• Production: 3,863 vehicles
• Deliveries: 3,309 vehicles, up 38.2% YoY, a record for the sixth consecutive quarter
• Revenue: $259 million, up from $201 million, but below the $280 million consensus
• Adjusted EPS: -$0.24, worse than the expected loss of $0.21

Q2 2025 Financial Results, Source: Lucid

While the company achieved strong delivery growth, the revenue miss and weak guidance weighed heavily on investor sentiment.

Lowering Full-Year Production Outlook

Lucid now expects to produce 18,000 to 20,000 vehicles in 2025, down from its previous target of 20,000 — a rare downward revision that signals growing pressure from macroeconomic and policy headwinds.

The cut likely reflects challenges from:

• Trump’s new auto tariffs
• The elimination of CAFE penalty credits, which previously provided a revenue stream for EV makers
• Rising costs and supply chain uncertainty

Strategic Shifts and New Partnerships

Interim CEO Marc Winterhoff highlighted progress in diversifying revenue streams:

• Continued ramp-up of the Lucid Gravity SUV
• Expansion into new markets and technologies
• A recently announced autonomous ride-hailing partnership with Uber and Nuro, aligning with Lucid’s broader strategy to monetize its EV and self-driving tech

Winterhoff said:

“We had our sixth consecutive quarter of record deliveries in Q2 and expect to continue this trend as we ramp up Lucid Gravity production in the second half of the year.”

EV Sector Under Pressure

Lucid is not alone. The entire U.S. EV sector is feeling the impact of shifting policies:

• Tesla: CEO Elon Musk warned of “difficult quarters ahead”, citing tariffs and the end of federal EV tax credits
• Rivian: Reported that policy changes have disrupted its supply chain, and rising material costs are squeezing margins

Reuters estimates production costs per Rivian vehicle have risen 8% YoY, partly due to temporary disruptions in rare earth supplies — critical for EV motors.