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Electric vehicle (EV) stocks have had a turbulent run over the past year, as production delays, rising costs, and shifting trade policies shake up the sector.
This time, Lucid Group (LCID) now finds itself caught in a “tariff trap,” with newly imposed duties cutting into margins and forcing management to lower its production outlook despite posting record deliveries. Management now guides for 18,000-20,000 vehicles produced in 2025 and revealed a $54 million tariff hit that pushed its gross margin deeply into the negative. Executives say localized sourcing should blunt the pain, but volatility remains.
