Libian said in his earnings report Tuesday that President Trump’s tariffs and other regulatory changes are likely to provide fewer vehicles than previously forecast.
The company said Tuesday it plans to offer between 40,000 and 46,000 EVs by the end of 2025. That said a month ago, Libian said it held an estimate of 46,000 to 51,000 vehicles this year, but Libian raised its capital expenditure guidance from $1.8 billion to $1.9 billion due to expected impacts from tariffs. The company’s previous CAPEX guidance was between $1.6 billion and $1.7 billion, according to a 2024 shareholder letter.
The announcement of Libian’s revenues comes days after both Ford and General Motors elicited leadership for the year, citing economic uncertainty related to Trump’s tariffs. Ford said it expects tariffs to add $2.5 billion in costs in 2025, but GM said it expects the impact to investors to be around $5 billion.
Libian warned investors in February that “changes in government policies and regulations, as well as changes in challenging demand environments” could threaten demand for vehicles. Things can only be more difficult if the Trump administration, Congress, or both decide to kill the EVS’ $7,500 federal tax credit.
Offering EVs below 46,000 will be a step back for the electric car maker as they have already tracked for the third year in a row without volume growth before guidance was reduced. Libian delivered 51,579 units in 2024 and 50,122 units in 2023. The company’s more affordable R2 SUV is expected to offer more, but it won’t come until 2026.
The company said Tuesday that it could generate gross profit of $206 million with 8,640 deliveries in the first quarter of 2025. This was the second quarter when the company was able to generate gross profits. This first quarter’s gross profit was particularly important as it met a contractual milestone that unlocked approximately $1 billion in funding from the Volkswagen Group as part of a joint venture with a German automaker.
While gross profit may look better on the balance sheet, net profit provides a more realistic view of costs. The company reported a net profit loss of $541 million in the quarter, significantly improving from the same $1.4 billion loss in the same year ago.
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Auto revenue fell to $1.222 billion from $1.12 billion in the first quarter of 2024, but total revenue rose slightly year-on-year thanks to an increase in the company’s software and services sales. Libian brought in $318 million from software and services in the first quarter.
Total software and services revenue for the first quarter of 2025 was $318 million, an increase of nearly four times from $88 million in the same period last year. Libian acknowledged an increase in electrical architecture and software development services for the new vehicles, increased sales of remarketing, and increased repair and maintenance services.
This article was first published at 4:06pm (East US). Information from Libian’s revenue calls has since been updated.
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