Lucid Group Stock Declines Amid Tariff Concerns and Earnings Anticipation

PHOENIX, Arizona — Lucid Group Inc. saw its stock price decline by 6.3% during trading on May 5, 2025, closing at $2.33 per share, following concerns over upcoming tariffs and its first-quarter earnings report due tomorrow.

The S&P 500 and Nasdaq Composite also experienced drops of 0.3% and 0.2%, respectively, indicating a broader market trend. Despite recent news of a new partnership with King Abdullah University of Science and Technology (KAUST) in Saudi Arabia, which will enable Lucid to utilize advanced supercomputing technology, investors are wary. Some fear that the long-term implications of this partnership may not benefit Lucid in the immediate future.

Lucid’s majority stakeholder, Saudi Arabia’s Public Investment Fund, has previously provided critical financing to the company. However, new tariff announcements from President Donald Trump‘s administration, including a 100% tariff on foreign films, have raised concerns among investors about potential negative impacts on Lucid’s business, particularly regarding imports.

Lucid plans to release its first-quarter results after market close on May 6. In its prior Q1 update from April, the company noted that it produced 2,212 vehicles and delivered 3,109 units during the quarter. However, it also recorded a hefty net loss of $636.9 million in the previous quarter, and analysts anticipate further losses in the upcoming report.

Economic data also played a role in the stock’s performance, revealing that the U.S. economy contracted by 0.3% in the first quarter of 2025, shaking investor confidence. With luxury goods often being seen as non-essential, Lucid’s high-end electric vehicles, which have a starting price of nearly $70,000, could face decreased consumer spending if recession fears persist.

As Lucid navigates these challenges, analysts will be closely monitoring not only the earnings results but also guidance on how looming tariffs might affect the company’s operational costs and pricing strategies in the future.