How might tariffs impact Lucid Motors production?

[msaunders9430]

I ask the question with hope for information, but not necessarily a direct answer to the question. It's potentially complicated.
This forum is not an official Lucid Motors forum and, to my knowledge, there are only a few (maybe one) actual Lucid employee here as a member.
I say that because I don't want anyone reading this post and any subsequent responses, to believe the posts represent Lucid Motors.
For the record, unless posted by a member verified by the forum administrator as a Lucid Motors employee, all posts are not official Lucid Motors responses.

Perhaps I'm seeking a better understanding of Lucid's manufacturing and production logistics. How might tariffs impact those logitics and the resulting production of cars?

I've heard Peter speak about the parts logistics challenges they faced during the intial production of the Air, so I know parts suppliers can play a critical role.
I also recall he mentioned how Lucid moved some parts production in-house.
Unlike some of the legacy car makers, I see Lucid as less dependent on Mexico, Canada, and China for production since there are no Lucid factories located in any of those countries.
While the majority of Lucid cars are produced in the US (AMP-1), I'm wondering were their direct parts suppliers are located along with the suppliers (indirect) of the direct suppliers.
If Lucid's direct and indirect parts suppliers are US-based, I see a minimal impact from tariffs.
However, if any of those suppliers are located in Mexico, Canada, or China, there is a potential impact.

For any who respond, let's keep politics out of this.

 

[HC_79]

I believe everything will be affected in some way or another. I know that Lucid was sourcing chips from China at some point. I’m not sure if that’s still the case, but if so, it’s safe to assume that the costs will eventually be passed on to consumers.

 

[Tâm]

I ask the question with hope for information, but not necessarily a direct answer to the question. It's potentially complicated.

This thread should be merged to:

H

Thread 'Lucid Motors in Canada'

Saturday at 9:35 PM

About 12% of Canadian car sales are EVs, compared to about 10% in the U.S. The Canadian government imposed a 25% tariff today on imports of U.S.-sourced goods along with a call for Canadians to eschew U.S. products wherever possible.

I wonder what effect the Canadian tariffs will have on the Lucid showrooms and service centers in Toronto and Montreal with China and Europe ready to fill the demand? Will Lucid even keep them open if this tariff stand-off continues?

• hmp10
• Replies: 53
• Forum: Off Topic Lounge

Unlike some of the legacy car makers, I see Lucid as less dependent on Mexico, Canada, and China for production since there are no Lucid factories located in any of those countries.

The world is now interconnected.

Canada exports lots of steel and aluminum to the US (without the materials, there's no car).

I did my tire rotation, and both the 4 rubber tires and 4 metal wheels have the words "Made in Mexico" (without tires, Lucid can't run).

I doubt many electronic parts, such as computer displays, transistors... are made in the USA.

Short answer without politics: Yes. Tariffs affect Lucid as well.

 

[stratus]

I am not an expert, but I worry that demand will decline for US products , due to anger and disgust. Perhaps Lucid is only minimally exposed . I guess it’s too early to tell.

 

[pyle112]

While I'm not am expert in domestic policy and economic impact, it seems many analyses I'm reading agree that auto prices will increase as the buck gets passed to the consumer and sales slump.
General impact on auto manufacturers

It will mostly come down to the a few factors
1) cars manufactured overseas will be hit the most
Link

2) the amount of foreign parts will impact their price

Tesla is arguably the most American produced car Link

Not sure how "American" lucid is, but if Tesla is an indicator than they will be affected but to a lesser extent than say GM

 

[msaunders9430]

This thread should be merged to:

H

Thread 'Lucid Motors in Canada'

Saturday at 9:35 PM

About 12% of Canadian car sales are EVs, compared to about 10% in the U.S. The Canadian government imposed a 25% tariff today on imports of U.S.-sourced goods along with a call for Canadians to eschew U.S. products wherever possible.

I wonder what effect the Canadian tariffs will have on the Lucid showrooms and service centers in Toronto and Montreal with China and Europe ready to fill the demand? Will Lucid even keep them open if this tariff stand-off continues?

• hmp10
• Replies: 53
• Forum: Off Topic Lounge

The world is now interconnected.

Canada exports lots of steel and aluminum to the US (without the materials, there's no car).

I did my tire rotation, and both the 4 rubber tires and 4 metal wheels have the words "Made in Mexico" (without tires, Lucid can't run).

I doubt many electronic parts, such as computer displays, transistors... are made in the USA.

Short answer without politics: Yes. Tariffs affect Lucid as well.

To me, this topic is different from the Lucid Motors in Canada thread. This topic is about Lucid production capabilities, not sales in Canada.

 

[Tâm]

To me, this topic is different from the Lucid Motors in Canada thread. This topic is about Lucid production capabilities, not sales in Canada.

Lucid CEO Peter Rawlinson Talks Saudi Investment, Elon Musk's Political Views And Taking Business From Tesla - Lucid Gr (NASDAQ:LCID)

Peter Rawlinson, CEO of Lucid Group, discussed the company's relationship with the Public Investment Fund (PIF) of Saudi Arabia, Lucid's rivalry with Tesla and Elon Musk's political views.

www.benzinga.com

"The Lucid CEO said vehicle manufacturing is not a problem and pointed to the company's production levels of 100 EVs per day in 2022. He sees Lucid's problem as low EV market demand. "

I don't think Lucid production is the problem (without tariff or with tariff). The challenge is demands. How do you get brand recognition and boost sales? Tariffs only make the components more expensive but creating the demand is still the issue.

 

[pyle112]

I don't think Lucid production is the problem (without tariff or with tariff). The challenge is demands. How do you get brand recognition and boost sales? Tariffs only make the components more expensive but creating the demand is still the issue.

Thread is related to how might tariffs impact- I would argue that lucid niche status is related it's luxury price. Tarriffs may impact less of the supply cost is a smaller component of the MSRP

 

[msaunders9430]

Lucid CEO Peter Rawlinson Talks Saudi Investment, Elon Musk's Political Views And Taking Business From Tesla - Lucid Gr (NASDAQ:LCID)

Peter Rawlinson, CEO of Lucid Group, discussed the company's relationship with the Public Investment Fund (PIF) of Saudi Arabia, Lucid's rivalry with Tesla and Elon Musk's political views.

www.benzinga.com

"The Lucid CEO said vehicle manufacturing is not a problem and pointed to the company's production levels of 100 EVs per day in 2022. He sees Lucid's problem as low EV market demand. "

I don't think Lucid production is the problem (without tariff or with tariff). The challenge is demands. How do you get brand recognition and boost sales? Tariffs only make the components more expensive but creating the demand is still the issue.

More expensive components due to tariffs "only" leads to higher car cost which negatively impacts demand and sales. The demand issue is exacerbated by tariffs if components cost are passed on to buyers.

 

[msaunders9430]

Thread is related to how might tariffs impact- I would argue that lucid niche status is related it's luxury price. Tarriffs may impact less of the supply cost is a smaller component of the MSRP

Tariffs may impact less of the supply? That's the big question. The supply of parts along with cost of those parts may be impacted by tariffs.

Based on earlier post about electronics and tires coming from outside US, there may be an impact on production.

This thread is about impact on production. Based on that impact, cost (higher or not) is determined.

I'm mostly concerned about production, not cost ... yet.

 

[gavram]

My Monroney stated 46% of Lucid is US/Canadian parts content...not sure what to make of that but definitely has Canadian components. Not sure what other countries supply parts for it...has anyone seen this broken down?

 

[pyle112]

Tariffs may impact less of the supply? That's the big question. The supply of parts along with cost of those parts may be impacted by tariffs.

Based on earlier post about electronics and tires coming from outside US, there may be an impact on production.

This thread is about impact on production. Based on that impact, cost (higher or not) is determined.

I'm mostly concerned about production, not cost ... yet.

Didn't think supply of lucids are impacted so much as the cost is ultimately borne by the consumer. Assuming all things equal and 20% of parts are overseas, that's an increase of 5%. Lucid can pass that price onto consumers or hot their own margin and profitability.

 

[Tim-in-CA]

I believe that those companies that are affected by tariffs on components will spread the costs across all products to minimize impacts (GM, et al), but those that are not affected will "ride the tariff wave" and impose greedflation to jack up prices just like they did during the Covid "supply chain crisis". Mark My Words, companies across the board will report record profits on the backs of consumers and "tariffs". I’m hopeful that Lucid will do what they can to minimize tariff impacts.

 

[pyle112]

I believe that those companies that are affected by tariffs on components will spread the costs across all products to minimize impacts (GM, et al), but those that are not affected will "ride the tariff wave" and impose greedflation to jack up prices just like they did during the Covid "supply chain crisis". Mark My Words, companies across the board will report record profits on the backs of consumers and "tariffs". I’m hopeful that Lucid will do what they can to minimize tariff impacts.

Record revenue. Some will have record profit. What types of companies get hurt the most in these situations? Luxury or general consumer brands?

 

[borski]

Record revenue. Some will have record profit. What types of companies get hurt the most in these situations? Luxury or general consumer brands?

Both, but mainstream consumer brands get hurt much more. When buying a luxury vehicle, there’s relatively little difference between 100k and 105k and 110k. Or 70k and 80k.

But the difference between $40 and $70 is massive, relatively speaking, if you are not a buyer who has “luxury” levels of wealth.

 

[msaunders9430]

I believe that those companies that are affected by tariffs on components will spread the costs across all products to minimize impacts (GM, et al), but those that are not affected will "ride the tariff wave" and impose greedflation to jack up prices just like they did during the Covid "supply chain crisis". Mark My Words, companies across the board will report record profits on the backs of consumers and "tariffs". I’m hopeful that Lucid will do what they can to minimize tariff impacts.

I suppose companies large enough to have multiple products (how ever many that may be) to spread out the costs will do better than a company producing one product.

I would think that contracts with suppliers are set for the short term. Long term, if these tariffs remain, different suppliers may be chosen. Hopefully without sacrificing quality.

I agree about Lucid attempting to minimize tariffs impacts. If tariffs help Lucid earn a profit ahead of schedule, I'm ok with that.