LONDON: Lucid stuck to its 2025 production forecast on Tuesday despite the threat of tariffs forcing many automakers to pull back targets, while the luxury electric-vehicle maker reported first-quarter revenue below analysts’ expectations.

Demand for pure battery cars in the US has been slowing as consumers, hit with high interest rates and recession worries, gravitate toward cheaper hybrids.

Lucid — majority-owned by Saudi Arabia’s Public Investment Fund— lowered the prices of its vehicles and offered incentives, including cheaper financing, to entice customers to its Air sedans that start at about $70,000 in the US.

The company said it would produce nearly 20,000 vehicles this year, while Wall Street expects it to manufacture 18,370, according to an average of five analysts by Visible Alpha.

Revenue for the quarter ended March 31 was $235 million, compared with analysts’ average estimate of $248.9 million, data compiled by LSEG showed.

Lucid, which has been focusing on cutting costs, posted an adjusted net loss per share of 20 cents, narrower than the 27-cent loss a year ago.

The company is gearing up to expand its product line with a mid-size car expected to roll out next year, targeting a $50,000 price point, aiming to broaden its customer base and strengthen its position in the competitive EV sector.

Success of Lucid’s recently launched Gravity SUV, along with the midsize, is seen as crucial to its long-term outlook, as the company burns through cash ramping up production.

US automakers are grappling with tariffs imposed by President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles.

Automakers, including Tesla, have said they were reassessing their full-year targets in the face of tariff uncertainty.

Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials.

In September 2023 it launched its first international manufacturing plant in Saudi Arabia.

Located in King Abdullah Economic City, the facility can currently assemble 5,000 Lucid vehicles annually during its first phase.

Once fully operational, it is expected to produce up to 155,000 electric cars per year.  

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for a second straight day, gaining 11.13 points, or 0.10 percent, to close at 11,434.08 on Tuesday. 

The benchmark index recorded a total trading turnover of SR4.51 billion ($1.20 billion), with 83 stocks advancing and 152 declining. 

Saudi Arabia’s parallel market Nomu, however, dropped 190.20 points to close at 27,952.79. 

The MSCI Tadawul Index edged up 0.16 percent to 1,457.72. 

The top performer on the main market was Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, which saw its share price surge 9.87 percent to SR15.58. 

Shares of Bupa Arabia for Cooperative Insurance Co. rose 3.59 percent to SR178.80, while Saudi Ceramic Co. gained 3.17 percent to reach SR29.30. 

Al-Etihad Cooperative Insurance Co. recorded the biggest decline of the day, with its share price slipping 7.69 percent to SR13.92. 

On the announcements front, United Electronics Co., also known as EXTRA, reported a net profit of SR103.44 million for the first quarter of 2025, marking a 10.2 percent increase compared to the same period last year.

In a Tadawul filing, the company attributed the rise to growth in its retail and consumer finance segments. EXTRA’s share price rose 0.11 percent to SR90.90. 

United International Holding Co. posted a net profit of SR57.81 million for the first quarter of 2025, up 10.42 percent year on year. The company said the increase was driven by a 25.3 percent rise in revenues, which reached SR174.65 million, compared to SR139.43 million in the same period last year. Its share price rose 0.59 percent to SR171.40. 

Saudi Printing and Packaging Co. widened its net loss to SR24.4 million in the first quarter of 2025, compared to SR22.62 million a year earlier. The company blamed the deeper loss on lower revenues from its printing and packaging divisions. Shares dropped 2.83 percent to SR12.34. 

Al-Etihad Cooperative Insurance Co. reported a net loss of SR11.91 million for the first quarter, reversing from a net profit of SR2.66 million in the year-earlier period. The insurer cited reduced revenue and a decline in gross earned premiums in the motor and medical segments as key reasons for the swing. Its stock closed down 7.69 percent at SR13.92.

Almoosa Health Co. announced a net profit of SR51.1 million for the first quarter of 2025, a surge of 272.99 percent year on year. The company said the sharp increase was driven by higher patient volumes and improved inpatient occupancy. Shares advanced 3.09 percent to SR167.

Saudi Arabian Mining Co., also known as Ma’aden, reported a net profit of SR1.54 billion for the first quarter of 2025, reflecting a sharp 57.88 percent increase compared to the same period in 2024. 

In a statement to Tadawul, the mining giant attributed the profit growth to higher commodity prices across all its product lines. 

The company’s revenue for the quarter reached SR8.51 billion, marking a 15.82 percent year-on-year rise. 

“We are off to a great start in 2025. We are building on the momentum of last year and continuing our progress across all operations, with strong production results, safety improvements, exploration success, project advancement and portfolio consolidation,” said Robert Wilt, CEO of Ma’aden.  

He added: “Looking ahead our strong financial position and focus on operational excellence positions us well to navigate the current market uncertainty. We will continue to drive value for our shareholders and develop mining as the third pillar of the Saudi economy.”