A recent report from a notable investment bank says newly imposed 25% tariffs on imported vehicles and components could decimate the 2035 earnings of European automaker Stellantis by as much as 75%. The automaker currently relies heavily on North American factories outside the US for that respective market, which contributes to a massive portion of its annual sales.
The impact of the Trump administration’s newly imposed 25% tariffs continues to echo throughout the global automotive industry. We are just starting to get a taste of their potential impact on many foreign OEMs, even those who assemble vehicles sold in the US in North America.
Starting April 3rd, 2025, the Trump administration plans to impose 25% tariffs on all cars and light trucks assembled outside the US and on all foreign auto parts. Still, the US government is extending the exemption to parts from Canada and Mexico under the USMCA free trade agreement until May 3rd.
Thus, many foreign automakers, like Stellantis, are staring down the barrel of a devastating earnings year, even though many of its vehicles sold in the US aren’t even built in Europe but in Canada and Mexico. A new report states that Stellantis’ 2025 earnings could stumble as far down as 75%, potentially putting the European auto conglomerate into a dire financial situation if nothing changes.
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Jeep Wagoneer S (Source: Stellantis)
Stellantis’ 2025 earnings face huge hurdle from US tariffs
As Automotive News Europe shared, the report from investment bank Jeffries outlined a trying earnings year for Stellantis. The bank pointed out that Stellantis’ US sales rely heavily on vehicles assembled at facilities in Canada and Mexico, in addition to approximately 58,000 additional vehicles imported from Europe in 2024. This includes marques like Maserati, Alfa Romeo, and Jeep.
Based on Stellantis’ 2024 financial and vehicle sales results, Jeffries stated that the incoming tariffs would have cost the company $7.1 billion in earnings and estimates its earnings before interest and taxes (EBIT) will be $9.3 billion.
Stellantis was already on shaky ground before the threat of tariff imports as the automaker’s 2024 EBIT tumbled by 64% after a September profit warning that led to the resignation of outspoken and many times dubious CEO Carlos Tavares. Company chairman John Elkann has taken over in the interim while Stellantis looks to announce Tavares’ successor in the first half of this year.
A significant threat to earnings will undoubtedly play a role in whom Stellantis selects to take the helm and navigate a global vehicle market that is becoming more cut-throat and competitive (with a dash of nationalism) every day, stoked by Trump and his Harem Guard Elon Musk.
Aside from manufacturing footprints in Europe, Mexico, and Canada, Stellantis operates facilities on US soil, contributing to roughly 61% of its branded vehicles sold there. However, Jeffries pointed out that those sites are significantly underutilized (52%) due to declining sales rates among US consumers.
Stellantis could pivot production from Mexico and Canada to the US if necessary and utilize a current build capacity of 1.3 million vehicles to avoid tariffs. Still, a transition of that scale is more easily said than done. During a recent call with analysts, Elkann spoke about looming tariffs and their effect on earnings, as well as the entire American Automotive Policy Council, of which Stellantis is a member. He reiterated the message delivered by the council:
(It) made a very clear statement about the dialogue ongoing with the Trump administration, and the importance of the competitiveness of the integrated North American automotive sector. But more importantly, the concern on the affordability of our products, our products made in America, and the implications on demand, on what will this uncertainty mean for demand in the United States of America.
Elkann relayed a commitment to the US administration’s vision to bring more work to the US but wants to ensure those measures don’t necessitate automakers raising MSRPs to remain competitive (and not go bankrupt in the process).
Stellantis’ stock is its lowest in years following the tariff announcement, so whoever takes over as CEO will have their work cut out for them in 2025 and beyond.
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Georgia BRIGHT, a statewide initiative to deliver affordable solar, kicked off its “No-Cost Solar Plan” in Atlanta yesterday, giving qualified homeowners a shot at roughly 400 fully prepaid rooftop-solar systems with zero upfront or maintenance costs. However, Georgia Bright’s No-Cost Solar Plan may lose its $156 million in grant money if the EPA steals back the Solar for All program’s entire $7 billion, which funded it.
On Earth Day (April 22) 2024, the Georgia BRIGHT Communities Coalition, including lead applicant Capital Good Fund, along with coalition member cities, Atlanta, Savannah, and Decatur, and dozens of other Georgia stakeholders, was allocated $156 million from Solar for All to bring solar to thousands of households statewide between now and mid-2029.
Families that earn 80% or less of their county’s Area Median Income can enter a drawing for the No-Cost Solar Plan now; a second drawing for another 400 systems is set for spring 2026.
“As the cost of living increases across our most vulnerable communities, this program will deliver significant savings to the households that need it most,” said Alicia Brown, director of Georgia BRIGHT.
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Those savings are already showing up. Pilot participant Christine Difeliciantonio saw her power bill plunge on her Columbus home from $224 in June 2024 to $50 in June 2025 after her panels came online, and she says the added resilience eases her mind during storms.
Nonprofits are benefiting, too. Trees Atlanta had 140 panels installed on their headquarters last November in the pilot program; the rooftop array went live in March and is on track to save about $3,000 a year, the carbon equivalent of planting 28,000 trees over 25 years.
What’s next for Georgia BRIGHT …
Georgia BRIGHT’s other programs in the works include its Residential Solar Savings Plan, offering custom rooftop installs with no upfront cost and guaranteeing households at least 20% savings on day one after factoring in the modest monthly payments. Georgia BRIGHT is also developing Community Benefit Solar, which lets businesses, houses of worship, and apartment buildings go solar so long as they share part of the financial benefits – think grocery gift cards, help with utility bills, discounted daycare, or rent relief – with eligible neighbors for five years. Finally, a Utility-Led Community Solar initiative will send grants to local utilities so they can run shared-solar programs designed specifically for low-income customers.
These programs really make a difference in a state like Georgia, which doesn’t offer any other solar incentives.
… if the EPA doesn’t steal its money
The New York Timesreported today that the Trump-led EPA is drafting letters to claw back the entire $7 billion Solar for All pot from 49 states, plus 11 nonprofit groups and Native American tribes. The grant money was awarded under President Biden’s 2022 Inflation Reduction Act. According to the Times‘ sources, the EPA plans to send termination notices this week, effectively erasing solar savings for nearly a million low-income families before the panels ever land on their roofs.
Legal groups are already gearing up for the fight. “If leaders in the Trump administration move forward with this unlawful attempt to strip critical funding from communities across the United States, we will see them in court,” Kym Meyer of the Southern Environmental Law Center told the Times.
If the EPA pulls the trigger on this cruel, senseless plan to steal solar from lower-income communities, it wouldn’t just kneecap Georgia’s new program – it would pull the rug out from under low-income solar projects nationwide. The fight over Solar for All is officially on. How about that energy emergency that Trump declared, eh?
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Tesla is in trouble, facing down hundreds of millions in fines on a single Autopilot wrongful death claim, accusations of covering up evidence, and plummeting sales in Europe, China, and the US. But, hey – that’s no reason to NOT give Elon a $29 billion bonus, right? Find out more on today’s troubling episode of Quick Charge!
We’re also helping Costco celebrate the first half-birthday of its EV marketplace, where you can get a great deal on a new Chevy Silverado EV capable of going more than one thousand miles on a single charge [insert 400 pages of fine print and disclaimers here–Ed.].
Today’s episode is brought to you by Retrospec, the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure. Quick Charge listeners can get an extra 10% off their next ride until August 14 with the exclusive code ELECTREK10, only at retrospec.com.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (most weeks, anyway). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Lucid Group (LCID) lowered its production goal for 2025, citing a changing market environment. Despite missing second-quarter expectations, the EV maker still has ambitious growth plans.
Why is Lucid lowering its 2025 production guidance?
After reporting Q2 earnings on Tuesday, Lucid said it now expects to produce around 18,000 to 20,000 vehicles, down from the previous 20,000 it had previously maintained.
The company said the updated production target reflects “the potential impact of continuously changing market environment and external factors.”
Despite reporting record revenue of $259.4 million, it missed Wall Street’s expectations of around $280 million. Lucid posted a net loss of $790 million, or 0.34 per share. With an adjusted loss per share of 0.24, the company also missed bottom-line estimates of a 0.21 loss per share.
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Lucid ended the quarter with $4.86 billion in total liquidity, including $3.63 billion in cash, cash equivalents, and investments.
Lucid Air (left) and Gravity (right) Source: Lucid
The reserve provides “ample flexibility,” according to Lucid, to fund operations, scale Gravity production, and invest in future platforms.
Lucid confirmed that it believes the liquidity is sufficient to fund it through the second half of 2026, when it will begin production of its midsize platform. The platform will have at least three “top hats,” including an expected midsize SUV and sedan. With prices starting at around $50,000, Lucid’s midsize models are expected to compete with the Tesla Model Y and Model 3.
Lucid Gravity SUV fitted with Nuro’s self-driving tech (Source: Lucid)
Last month, Lucid announced a partnership with Uber and Nuro to deploy 20,000 electric robotaxis over the next six years. Uber will invest $300 million in Lucid as part of the collaboration.
It’s also expanding awareness with the addition of a new brand ambassador, Timothée Chalamet. The multi-year partnership will launch with a new advertising campaign this fall.
Lucid delivery and production (Source: Lucid Group)
Despite lowering its full-year production goal, Lucid achieved its sixth consecutive quarter of record deliveries. Lucid delivered 3,309 vehicles in Q2 and produced 3,863 at its Casa Grande, Arizona, plant.
Despite the lower forecast, Lucid said it’s still “on track to significantly increase production” in the second half of 2025.
Like most auto brands, Lucid is preparing for a shakeup under the Trump Administration. However, Lucid already builds most components in the US, including the battery and powertrain. It’s also expanding its supply chain with new partnerships for domestic EV resources such as Graphite.
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