Elon Musk, during a news conference with President Donald Trump, inside the Oval Office at the White House in Washington on May 30, 2025. Tesla shares fell 6% in premarket trading on Thursday after the company reported a second straight quarter of declining automotive sales. Tesla shares have been hammered this year with the stock down nearly 18% to date, not including the Thursday premarket move. Tesla has been facing rising competition in key markets like China and Europe, especially from lower costs Chin ...

Core Insights - Federal policy shifts are significantly impacting the new and used car market, with consumer demand data from over 29 million shoppers and vehicle supply data from millions of vehicles informing the analysis [1] Pricing Trends - Imported vehicle prices have risen, particularly from the U.K. with an increase of over $10,000, while prices for U.S.-built vehicles have dropped by nearly $200 on average [2][3] - Average new vehicle prices have increased slightly by just under $100 since January [2] Market Segmentation - The entry-level vehicle segment, priced under $30,000, has seen a significant decline in market share from 38% in 2019 to an average of 13.6% in the first half of 2025, largely due to tariffs affecting foreign-built vehicles [4] - The mid-range new car segment ($30,000 to $49,000) accounts for nearly half of all inventory, with 50% of these vehicles being imported [5] Electric Vehicle (EV) Market - The average price of new electric vehicles is $65,000, with the federal EV tax credit of up to $7,500 for new vehicles set to expire soon, influencing purchase decisions for 48% of current EV shoppers [6] - 53% of current EV owners cited the tax credit as a primary reason for their purchase [6] Used Vehicle Market Dynamics - Used car prices rose nearly 3% in the first half of 2025, driven by increased inventory from trade-ins during a surge in new car buying [7] - The average time used vehicles spend on dealer lots has decreased by nearly 5% year over year, indicating a faster turnover rate [7]

Core Viewpoint - Lucid Motors has faced significant stock declines in 2025, with a 30.1% drop in the first half of the year, following a 28.3% decline in 2024, raising concerns among investors about the company's future prospects [1][3]. Financial Performance - Lucid reported a revenue of $235 million for Q1 2025, which was below analysts' expectations of $246.2 million, contributing to a sell-off in its stock [3]. - The company produced and delivered 3,863 and 3,309 vehicles respectively in the early part of 2025, showing improvement compared to 2,110 vehicles produced and 2,394 delivered during the same period in 2024 [6]. Leadership Changes - The announcement of the CEO's departure raised concerns among investors and analysts, leading Bank of America to reduce its price target for Lucid's stock from $3 to $1, indicating that the leadership change was viewed as a significant issue [3]. Legislative Environment - Comments from Rep. Mike Johnson regarding the potential elimination of the $5,700 federal EV tax credit contributed to investor uncertainty, with a belief that the credit might be more likely to be killed than saved [4]. - The overall sentiment towards electric vehicles has been dampened by President Trump's lack of enthusiasm, further impacting Lucid's stock performance [5]. Market Sentiment - Despite the volatility and challenges faced in the first half of 2025, there remains potential for Lucid Motors, and investors are encouraged to continue evaluating the stock for future opportunities [7].