The Cost of US-Made Electric Vehicles Might Surprise You

Lucid Motors Warns of Rising Car Prices in the US

American electric vehicle manufacturer Lucid Motors has stated that all automakers in the US are forced to raise prices on their cars. Although the company produces its electric cars locally, it has a large global supply chain for components. Lucid is also strengthening its partnership with Panasonic for the supply of battery materials.

Executive Director Marc Winterhoff noted that even cars manufactured in the US are not protected from global economic factors. The primary reason for the price increase is the tariffs introduced during the Trump presidency. Although Winterhoff did not directly confirm that Lucid would necessarily raise prices, his words indicate the inevitability of new cars becoming more expensive for American consumers.

“For American consumers, cars will become more expensive due to the tariff regime. There is no other way out. Of course, production can be localized, but that will also increase costs,” stated Winterhoff.

Difficulties of Localizing Production

Lucid is trying to reduce its dependence on imports by making deals with local suppliers, such as Graphite One. However, the global nature of the supply chain complicates this process. Winterhoff explained that moving production to the US often leads to increased costs, which ultimately still affects the final price of the products.

The company is actively working on sourcing more raw materials for batteries from the US, collaborating with Panasonic. Currently, many materials are imported from Japan and South Korea, but Lucid is taking steps towards greater localization, taking advantage of government incentives for manufacturers.

Rising production costs for electric vehicles could affect the rate of their adoption. However, despite these challenges, Lucid continues to invest in innovation and expand its own production to remain competitive in the market.

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