Lucid Motors (NYSE:LCID) was looking to add further partnerships after the company struggled in 2024.
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LCID has rallied above the 2024 low around $2.25 and will look to mount a revival.
Lucid Chief Executive Officer Peter Rawlinson told Bloomberg TV it would be good to share costs and property with traditional companies, and said there are ongoing conversations with “a couple” of manufacturers.
The company has struggled to keep up with Tesla’s price war in 2024 and there is a risk that Donald Trump will cut a $7,500 EV tax credit at the request of Elon Musk. Lucid is backed by Saudi Arabia’s public investment fund and recently entered into a partnership with Volkswagen.
Lucid’s posted a third-quarter revenue of $137.8 million which was nearly 30% below the same period last year and production of 8,000-8,500 vehicles, is down from a target of 10,000.
Automakers have had a tough year after sales slumped from 2023. Telsa’s share price was boosted by the election victory of Trump, rather than strong performance. However, Tesla’s latest numbers showed that the company sold 21,900 EVs in China during the first week of December.
China’s auto body has been looking to get an extension of previous subsidies after the country’s EV exports fell. But a bright spot for China has been domestic EV adoption at a record high into the end of the year. Local OEMs have continued to boost production and bring new models to the market.
The year ahead could be different with the Trump Presidency after threats of tariffs on imported goods that could stretch to electric vehicles. A report from MIT said that tariffs could drive up the cost of batteries and hurt the sector further. A threat of 25% tariffs from Mexico would also hurt Chinese automakers setting up plants in the country.
“This is going to raise the cost of clean energy and that will slow down the revolution,” says David Victor, professor at the University of California, San Diego.
