What Lucid Group, Inc. told the SEC could break it.

China's export controls on rare-earth minerals (critical for EV magnets) and semiconductor-related products have already adversely impacted Lucid's ability to predict manufacturing requirements, costs and production and to receive raw materials and components.

“Tariffs announced by the United States and resulting retaliatory tariffs and other trade barriers, including China's changes to its export controls for rare-earth minerals and semiconductor-related products have had and may continue to have, an adverse impact on our ability to predict our manufacturing requirements, costs and production, and our ability to receive raw materials and components.”

Cost of revenue included ~$120 million of incremental tariff cost impact in 2025; Canada announced countermeasure tariffs on select US-manufactured vehicles, compounding Lucid's trade exposure.

“Cost of revenue included approximately $120 million of incremental tariff cost impact during the year ended December 31, 2025.”

Lucid depends on hundreds of third-party suppliers, the majority of which are single-source; many components are custom-designed from a single source, exposing production of the Lucid Air and Gravity to component shortages with limited ability to qualify alternates quickly.

“While we seek to obtain components from multiple sources whenever possible, many components used in our vehicles will be custom-designed and purchased by us from a single source. Our limited, and in many cases single-source, supply chain exposes us to delivery failure or component shortages for our production, including continued production of the Lucid Air and Lucid Gravity.”