Libian hit a milestone in an agreement with German automotive giant Volkswagen. Libian announced Wednesday that it had delivered 10,661 vehicles in the second quarter.
This is a 23% decline in sales from the second quarter of 2024, a slight improvement over the rough first quarter of Libian, which delivered 8,640 EVs. The company has already lowered its 2025 sales target as a result of President Trump’s tariffs and trade war.
Libian said Wednesday that he believes he will offer between 40,000 and 46,000 EVs this year. But even hitting the high end of that range means that in 2025, they will ultimately sell fewer cars than they have in the past two years. All of this will be particularly tenuous for Libian, who has historically burned out in billions of dollars and has deposited many banks with the 2026 release of the R2, a more affordable SUV.
The payments from Volkswagen are the result of Libian’s tally of all-time profits in the first quarter of this year. In 2024, the two automakers announced technology joint ventures worth up to $5.8 billion. Libian offers its employees to its joint venture, along with its software and electrical architecture designs. Volkswagen plans to use these underlying technologies to enhance future EVs. It provided Libian with its first billion dollars in the form of a memo that could be converted to Libian late last year.
Libian has spent a lot of money and effort over the past two years simplifying the design of its existing consumer cars, the R1S SUV and R1T pickup trucks, allowing it to hit only its gross profit milestone. These redesigned versions appeared on the road last year, and while Libian has dramatically reduced its build, the company is still losing money overall.
Things could become even more challenging for businesses like Libian if Trump proposes his so-called “one big beautiful bill” and gets what he wants. This week, the law passed from the US Senate to the House of Representatives. The current format ends the federal EV tax credit, which immediately cuts $7,500 from the price of new electric vehicles this September.
