Shares of Lucid Group Inc (NASDAQ:LCID) are trading lower Wednesday, potentially on concerns over proposed 50% tariffs on foreign auto imports.
Lucid Group stock is taking a hit today. Why is LCID stock falling?
Automotive Tariff Threats and Global Supply Chain Risks Drag EV Sentiment
Sentiment was dented on Monday following new proposals by the Trump administration to impose 50% tariffs on foreign auto imports and components. The tariff threat sent ripples across the automotive sector as investors recalibrated potential supply chain costs and raw material exposure.
Though Lucid manufactures its vehicles domestically in Arizona, Wall Street could be concerned that tariffs on imported battery materials, specialized sub-assemblies and international parts could drive up production costs, further pressuring the company’s margins and delaying its timeline to achieving positive gross profitability.
