Lucid warns tariffs will lead to higher costs even for autos produced in the U.S.

Lucid Group (LICD) tariffs will increase costs for automakers, even those with manufacturing in the U.S.

Interim Chief Executive Officer Marc Winterhoft told Bloomberg that the industry’s global supply chain means domestic manufacturers still have to import raw materials and some parts from other nations. “For the American consumers, vehicles are going to be more expensive under the tariff regime. There’s no other way around it,” he stated Winterhoff. “There’s a reason the supply chain is so global,” he added.

The electric vehicle maker is looking for ways to reduce costs by localizing more of its supply chain, including with Panasonic to find ways to source more raw materials in the U.S. However, the supply chain retooling process is slow across the auto industry and is expected to lead to higher costs for manufacturers and higher prices for auto buyers.

Lucid (NASDAQ:LCID) delivered 3,109 vehicles in Q1, which was up 58% from the same quarter a year ago. The company has a production goal of 20,000 vehicles for 2025.

Shares of Lucid Group (NASDAQ:LCID) fell 1.1% in Monday trading. Short interest on the EV stock is 12.9% of the total float.