Lucid Shares Drop 98% While Honda Logs ¥2.5T EV Impairment
Lucid's EV startup lost money on every vehicle in 2025, posting $1.35B revenue against $2.61B in production costs and driving its stock 98% below peak. Honda took a ¥2.5T ($15.7B) EV impairment charge and logged four straight quarterly losses, underscoring the capital intensity needed to rival Tesla.
1. Lucid Financial Challenges
Lucid has lost money on every EV it produced in 2025, generating $1.35 billion in revenue against $2.61 billion in manufacturing costs. Its stock has plunged 98% from its all-time high as investors question the startup's path to per-vehicle profitability and sustainable cash flow.
2. Honda EV Impairment and Losses
Honda recorded a ¥2.5 trillion ($15.7 billion) impairment charge on abandoned EV investments and booked four straight quarterly automotive losses, its worst streak since 2011. US sales grew just 0.5% last year while China deliveries fell for 24 consecutive months, prompting a strategic R&D overhaul and project cancellations.
3. Implications for Tesla
Tesla maintains a significant production cost advantage and more diverse EV lineup as competitors struggle with unprofitable operations and project setbacks. Lucid's losses and Honda's write-down highlight the scale of investment and execution challenges facing automakers seeking to erode Tesla's market leadership.