- The tariffs implemented under the Trump administration could lead to higher car prices; however, this situation may work to the advantage of Lucid, an electric vehicle manufacturer based in Arizona.
- The chief executive officer of the electric vehicle company, Marc Winterhoff, states that many components of the automobile are manufactured in Arizona.
The Trump administration claims its Tariff policies will assist in bolstering and expanding American manufacturing. , and electric vehicle manufacturer, Lucid, based in Casa Grande could be among the initial beneficiaries.
What we knowOnce their supply of vehicles depletes, numerous automobile makers will likely have to start paying these duties.
The prices are expected to increase for the majority, yet a select few car manufacturers could end up paying significantly less compared to their peers.
Following its most successful quarter yet, A startup named Lucid, which focuses on electric vehicles, is based in Arizona. Now faces additional challenges. This month, they plan to begin delivering their inaugural SUV, the Gravity, to buyers.
"Certainly, tariffs will benefit every domestically made vehicle, including those from Lucid," he stated. Karl Brauer of iseecars.com .
Brauer, who analyzes the automotive sector, states that tariffs will affect all consumers and manufacturers alike, yet Lucid is in a strong position.
Our electric motor is ready, and we've completely vertically integrated the drivetrain at our facility in Arizona, Marc Winterhoff of Lucid said.
Dig deeperWinterhoff, the newly appointed CEO at Lucid, appeared on FOX Business to emphasize the significant portion of the vehicle manufactured in Arizona, noting that this figure would continue to grow.
"Additionally, we currently have agreements with our cellphone manufacturers to shift cellphone production to facilities within the country," Winterhoff stated.
Here’s more positive news for Lucid: According to Winterhoff, half of their new customers this year were former Tesla owners. This indicates that recent developments involving Elon Musk and the Trump administration could be prompting some people to switch from Tesla to Lucid.
Local perspective"Tesla continues to have the longest demonstration queues at our festival by a significant margin," he mentioned. BJ Birtwell from Electrify Expo .
The massive 1,000,000-square-foot celebration of electric vehicles is heading to State Farm Stadium on April 12-13 He mentions this provides an opportunity for prospective buyers to inquire with companies regarding the effects of tariffs.
"Sure, the tariffs are dominating the news and generating significant interest in how they will affect electric vehicles," Birtwell stated.
Even though many aspects appear favorable for Lucid, Brauer noted that the electric vehicle manufacturer, employing numerous people in Arizona, will continue to encounter significant hurdles in the coming months and years.
"As he pointed out, it's an extremely difficult setting for car manufacturers across the board," Brauer stated.
Arizona hopes for Lucid to not only survive but also flourish, given that many electric vehicle startups from the past year haven’t made it, resulting in numerous job losses.