Lucid warns tariffs will raise car prices in US

Logo of Lucid Group

Tariffs imposed by US President Donald Trump will increase car manufacturing costs, even within the United States, Lucid Group’s interim CEO Marc Winterhoff warned in an interview with Bloomberg on Monday.

For US consumers, cars will be more expensive under the tariff regime, the CEO said, indicating that there is no way around that, with the globalization of supply chains.

Speaking from Panasonic Holdings' new EVs battery plant in Kansas, he added that Lucid is currently working with the Japanese electronics company to find ways to source more raw materials for battery components from within the US.

However, Winterhoff clarified that Lucid will not use cells produced at that plant in its vehicles until next year.

Lucid has partnered with Panasonic since 2022 to supply batteries, but Winterhoff concluded by noting that the partnership was economically viable before the tariffs were imposed, thanks to government incentives that had helped reduce costs at the time.