Core Viewpoint - Lamborghini reported weaker earnings for 2025 despite achieving record revenue, primarily due to U.S. tariffs, currency fluctuations, and costs associated with revising its electric vehicle (EV) plans [1][2]. Financial Performance - Revenue increased by 3.3% to 3.2 billion euros ($3.7 billion), with deliveries reaching a record 10,747 units [2]. - Operating income decreased to 768 million euros from 835 million euros in 2024, resulting in a margin drop to 24% from 27% the previous year [2][3]. Market Challenges - U.S. tariffs negatively impacted both sales and margins in Lamborghini's largest market, leading to insufficient price increases to offset tariff rates [2]. - The company does not plan further price increases in 2025, as management believes it would not benefit the market at this time [3]. Product Strategy - Lamborghini has canceled its plans for a fully electric sports car by 2030 due to weak demand and concerns over investment returns, indicating a significant resistance to EVs in its market segment [5]. - Instead of an EV, Lamborghini will introduce a plug-in hybrid model named Lanzador in 2030, expanding its existing hybrid lineup [8]. Future Outlook - CEO Stephan Winkelmann stated it is too early to provide forecasts for 2026 due to uncertainties such as the ongoing war in the Middle East, which could affect the luxury car market [4].