British oil major BP reports sharp drop in fourth-quarter profit, vows strategy reset
Environment
Ford CEO warns Trump tariffs will ‘blow a hole’ in the US auto industry like we’ve never seen
As automakers brace for new tariffs on imports from Mexico and Canada, Ford’s CEO Jim Farley is warning the extra costs would be “devastating.” Farley said the additional tariffs, which could go into effect as soon as March 1, would be a “blow a hole” in the US auto industry.
Ford CEO says Trump tariffs would be devastating for the US
After Trump imposed an extra 25% tariff on imports from Canada and Mexico earlier this month, Ford’s CEO is speaking out, saying the impacts will be devastating, not only for automakers but also for buyers.
Although the tariffs are on hold for now, Farley said the threats are already creating “chaos” and “a lot of costs” for the US auto industry.
During a Wolfe Research investment conference on Tuesday, Ford’s CEO explained that “President Trump has talked a lot about making our US auto industry stronger, bringing more production here, more innovation to the US, and if this administration can achieve that, it would be one of the most signature accomplishments.”
So far, however, “what we’re seeing is a lot of cost and a lot of chaos,” Farley added. Ford is looking for ways to build up inventory in the US to soften the blow of Trump’s tariffs.
Although Ford is less exposed than rivals like GM and Jeep maker Stellantis, it is still expected to take a hit from suppliers that will be impacted, executives explained at the event.
On the company’s fourth-quarter earnings call, Farley said, “There’s no question that tariffs at 25% level from Canada and Mexico, if they’re protracted, would have a huge impact on our industry, with billions of dollars of industry profits wiped out and an adverse effect on the US jobs.”
Electrek’s Take
The US auto industry is already falling behind China, which Farley called “a major force in our industry.” China is by far the world’s largest EV market, but domestic leaders, like BYD, are quickly expanding overseas, stealing market share from legacy automakers.
BYD sold over 4.25 million vehicles last year. For the first time, BYD sold more vehicles than Honda and Nissan, which are now scrambling to keep up.
Trump’s decision to withdraw federal support for electric vehicles and impose tariffs on our biggest trade partners will only put the US further behind.
Ford, GM, and several others have already pushed back new EV launches and other projects in anticipation, opening the door for overseas automakers to take advantage.
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Environment
Trump tariffs on Canadian oil expected to raise U.S. gasoline prices if enacted next month
A person fills up a fuel tank at a pay-at-the-pump gasoline station in Edmonton, on January 30, 2025, in Edmonton, AB, Canada.
Artur Widak | Nurphoto | Getty Images
President Donald Trump‘s threatened tariffs on Canadian crude oil imports could raise gasoline prices for U.S. drivers if the levies are enacted next month, according to major refiners and energy analysts.
Trump issued an executive order on Feb. 1 imposing a 10% tariff on Canadian energy imports to the U.S., in addition to sweeping 25% levies on goods from from Canada and Mexico. The tariffs are currently on hold until March 4 after Mexico City and Ottawa reached an agreement with the White House.
Refiners particularly in the Midwest have become reliant on Canadian crude imports despite the fact that the U.S. is the largest oil producer in the world, outpacing Saudi Arabia and Russia. This is because Canadian crude is heavier, lower quality and therefore cheaper to purchase, according to Wells Fargo analysts.
Marathon Petroleum processes a significant amount of heavy crude and expects costs to increase if the tariffs on Canadian energy go into effect, CEO Maryann Mannen told investors recently.
“We believe that the majority of that would be borne by the producer and then frankly to a lesser extent the consumer,” Mannen said on the company’s Feb. 4 earnings call. “We’re working with the administration. We’re working with agencies as well as the trade associations to ensure the right people understand the implications of these decisions.”
The U.S. imports nearly 6.6 million barrels per day of crude oil with about 60% coming from Canada, according to Andy Lipow, president of Lipow Oil Associates. Midwest refiners in particular are heavily dependent on these imports with 70% of the crude they process into diesel and gasoline coming from Canada, according to Lipow.
How much fuel prices would rise due to the tariffs depends on how Canadian producers and U.S. refiners respond. In general, a 10% tariff passed to the consumer would increase gasoline and diesel prices by about 15 cents per gallon, Lipow said in a Feb. 2 note.
Canadian prime minister candidate Chrystia Freeland, who previously served as finance minister, has warned that oil producers in Canada have alternatives to the U.S. market.
“There is a danger here for the U.S., and that is Canadians are really angry,” Freeland told CNBC in a Feb. 4 interview. “We will retaliate if we have to. You should be glad that you have us as a reliable energy supplier. We do have alternatives.”
U.S. refiners, however, have “few economically and politically viable alternatives” to Canada’s heavy crude, Mason Mendez, investment strategy analyst at Wells Fargo, told clients in a report Monday. Domestic production could replace some lost Canadian supply but U.S. crude is generally lighter than Canadian oil, Lipow said. Many U.S. refiners have physical limitations on switching totally to light crude oil, he said.
Canadian producers could divert exports from the U.S. East and West Coasts to Europe and Asia instead, Lipow said. This would force U.S. refiners on the East Coast to seek more expensive alternatives in West Africa and West Coast refiners to buy from South America or the Middle East, he said.
In the case of the Midwest, Canada does not have the logistics in place to divert all its exports away from the region, Lipow said. But they would probably try to find other buyers to the extent that they can, he said.
Traders might bid up the price of U.S. crude oil to cover any shortfall in region. Fuel prices might rise by up to 15 cents per gallon as a consequence, Lipow said. But if the tariffs cause local shortages, prices could spike by more than 30 cents per gallon.
The Midwest also does not have easy access to imports through the Gulf Coast because the pipeline system in the U.S. generally runs north to south and west to east, Lipow said.
With few alternatives, U.S. refiners will likely continue to purchase crude from Canada despite the higher cost, Mendez said. They may be able to convince Canadian producers to absorb part of the tariff rather than pass all of it on to the U.S., the analyst said.
“However, even if they split the effects of a 10% tariff, U.S. gasoline prices will likely still rise modestly,” Mendez said.
Environment
Lucid (LCID) CEO predicts ‘exponential’ growth, and it’s not just from selling luxury EVs
Can Lucid (LCID) make 1 million EVs a year? CEO Peter Rawlinson said this is his vision, and Lucid has ambitious plans to achieve it. After launching its first electric SUV, the Gravity, Lucid will enter the mass market with its midsize platform starting at around $50,000. Rawlinson said this is “finally when we compete directly with Tesla,” but the EV maker has even bigger plans to drive growth.
After delivering the first Gravity models in December, Lucid’s CEO claims the electric SUV is “destined to be a landmark product” with an EPA-estimated range of 450 miles.
During the BloombergNEF Summit in San Francisco last week, Rawlinson explained how the company plans to become a powerhouse in the EV space.
Although the Gravity is an impressive-looking vehicle, loaded with tech and a true 7-seater (not a 5-seater, plus two kids in the back, as Rawlinson said many of its rivals offer), it’s what you can’t see that makes the electric SUV so unique.
The Gravity achieves up to 450 miles of driving range with a 123 kWh battery. Rawlinson said the fact that it can achieve such a long driving range with so few batteries is a testament to Lucid’s technology, which he claims is the “most advanced technology in the world.”
Lucid was the first to launch an EV with 520 miles range. At the Summit, Rawlinson claimed that “nobody today is within 100 miles of range of where we were three years ago,” referring to its luxury Air sedan.
Lucid delivered over 10,200 vehicles last year, up 70% from the 6,001 in 2023 and roughly 3,500 in 2022. Rawlinson said the company is seeing “exponential sales growth,” but he expects to see things pick up over the next few years.
Lucid is launching new EVs and tech to boost growth
Following the Gravity, Lucid will launch its midsize platform. The platform will underpin a sedan and crossover, starting at around $50,000. According to Rawlinson, this is when Lucid will “compete directly with Tesla” as direct rivals to the best-selling Model Y and Model 3.
However, as Rawlinson explained, “Lucid does not exist to be a niche luxury manufacturer.” Lucid is in the luxury space “at the moment” because it needs to be for financial support.
It’s the company’s tech that will be Lucid’s trademark. With some of the most advanced tech on the market, it will “cascade down,” reducing the cost to mass produce EVs.
“We want Lucid to be huge,” Rawlinson said. By the early 2030s, he envisions Lucid producing one million cars annually.
Lucid plans to achieve it through progressive steps. After launching the Air, Lucid’s first electric SUV is now hitting the market. In late 2026, Lucid is scheduled to begin production of its midsize platform.
Rawlinson believes Lucid will have a significant advantage by then. Since the battery is by far the biggest cost to make an EV, with some of the most efficient technology, Lucid will be able to offer a competitive range at a lower price point.
Not only that, but Lucid is also developing a new affordable “Atlas” drive unit. Rawlinson claimed the new drive unit will be “an absolute breakthrough” for Lucid and the planet to bring down EV costs.
The company is already licensing its technology to other automakers, which could be an even bigger business for Lucid than selling vehicles.
Last year, Lucid secured a tech partnership with Aston Martin to supply its proprietary powertrain tech for the British automaker’s upcoming electric cars.
Rawlinson said Lucid is in talks with several others about similar licensing partnerships. According to Lucid’s CEO, EV adoption will continue to climb over the next few years, and some OEMs will be left behind. “The train is leaving the station,” he said, and that’s why Lucid is open to strategic alliances through licensing its technology.
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