Lamborghini 2025 Profit Falls on U.S. Tariffs and EV Pivot
Lamborghini reported lower 2025 profits due to U.S. tariffs and costs from cancelling its first EV. Record revenue of 3.2 billion euros helped ease the impact.
The luxury sports car manufacturer based in Italy reported a dip in its 2025 operating earnings, citing a combination of international trade pressures and a significant strategic pivot regarding its electrification roadmap. Despite reaching a record delivery milestone of 10,747 units, the Volkswagen AG-owned brand saw its operating income slide to 768 million euros, down from 835 million euros the previous year.
A primary headwind for the company was the implementation of tariffs in the United States, which remains the brand's largest global market. While the company implemented price hikes last year to counter these costs, the adjustments were insufficient to fully protect margins. CEO Stephan Winkelmann noted that further price increases are not currently planned.
"Lamborghini does not plan further price increases this year as we do not think this is something helping the market at this time."
The financial results also reflected charges associated with the cancellation of the brand's first fully electric vehicle. Lamborghini recently reversed its decision to launch an EV by 2030, pointing to cooling global demand for electric sports cars and concerns regarding the return on investment for such high-cost projects.
"Resistance to EVs has increased significantly worldwide in our segment."
Winkelmann further explained that while some customers have experimented with electric platforms, their experiences often fell short of the performance expectations associated with the luxury segment. Consequently, the company is shifting its focus toward the Lanzador, a 2+2-seat Grand Tourer plug-in hybrid slated for 2030. This strategy contrasts with competitor Ferrari N.V., which is moving forward with its first electric model set for a May reveal.
To mitigate external economic pressures, the company emphasized its success in high-margin vehicle customization and the strong performance of the Revuelto sports car. Nearly every vehicle delivered in 2025 included personalized elements requested by clients, helping to maintain a 24% operating margin even as costs rose. Looking ahead, the company remains cautious due to geopolitical uncertainties in the Middle East that could impact logistics and oil supplies.
