JPMorgan Chase CEO Jamie Dimon is calling for a broad recommitment to American ideals as his bank navigates geopolitical uncertainty, a teetering economy and the revolutionary impact of artificial intelligence.

Dimon in his annual letter to shareholders, published Monday, noted the country’s 250th anniversary as “the perfect time to rededicate ourselves to the values that made this great nation of ours — freedom, liberty and opportunity.”

“The challenges we all face are significant. The list is long but at the top are the terrible ongoing war and violence in Ukraine, the current war in Iran and the broader hostilities in the Middle East, terrorist activity and growing geopolitical tensions, importantly with China,” Dimon said. “Even in troubled times, we have confidence that America will do what it has always done — look to the values that have defined our singular nation and sustained our leadership of the free world.”

Dimon, the longtime leader of the world’s largest bank by market cap, is among the most outspoken of U.S. corporate leaders. His annual letter offers not only a matter of record for his firm’s performance, but also sweeping perspectives on the global state of affairs.

In Monday’s letter, Dimon noted headwinds including global conflicts, persistent inflation, private market upheaval and what he called “poor bank regulations.”

Dimon said that while regulations like those put in place after the 2008 financial crisis “accomplished some good things … they also created a fragmented, slow-moving system with expensive, overlapping and excessive rules and regulations — some of which made the financial system weaker and reduced productive lending.”

He specifically cited negative consequences of capital and liquidity requirements, the current construction of the Federal Reserve’s stress test and a “badly handled” process at the Federal Deposit Insurance Corp.

Dimon also said JPMorgan’s reaction to revised proposals for Basel 3 Endgame and a global systemically important bank, or GSIB, surcharge — issued by U.S. regulators last month — were “mixed.”

“While it was good to see that the recent proposals for the Basel 3 Endgame (B3E) and GSIB attempted to reduce the increase in required capital from the 2023 proposals, there are still some aspects that are frankly nonsensical,” Dimon said.

The CEO said with the aggregate proposed surcharges of about 5%, the bank would need to hold “as much as 50% more capital across the vast majority of loans to U.S. consumers and businesses when compared with a large non-GSIB bank for the same set of loans.”

“Frankly, it’s not right, and it’s un-American,” he said.

On trade and geopolitics

Dimon identified geopolitical tensions as the primary risk facing his bank, namely the wars in Ukraine and Iran and their impacts on commodities and global markets — deeming war “the realm of uncertainty.”

“The outcome of current geopolitical events may very well be the defining factor in how the future global economic order unfolds,” he said. “Then again, it may not.”

He also cited a “realignment of economic relations in the world” brought on by U.S. trade policy. U.S. President Donald Trump has made tariffs a signature policy of his second term in office, introducing higher duties on dozens of trade partners and import categories.

“The trade battles are clearly not over, and it should be expected that many nations are analyzing how and with whom they should create trade arrangements,” Dimon said. “While some of this is necessary for national security and resiliency, which are paramount, it is hard to figure out what the long-term effects will be.”

On private markets

Dimon also spoke to recent upheaval in the private markets, as fears around loans made to software firms spur massive redemption requests at private credit funds.

“By and large, private credit does not tend to have great transparency or rigorous valuation ‘marks’ of their loans — this increases the chance that people will sell if they think the environment will get worse — even if actual realized losses barely change,” Dimon said.

The executive added that actual losses are already higher than they should be relative to the environment.

“However this plays out, it should be expected that at some point insurance regulators will insist on more rigorous ratings or markdowns, which will likely lead to demands for more capital,” he said.

On AI

Dimon reiterated Monday that the pace of AI adoption is unlike any technology that came before it. He said while its implementation will be “transformational,” it remains to be seen how the AI revolution will unfold.

“Overall, the investment in AI is not a speculative bubble; rather, it will deliver significant benefits. However, at this time, we cannot predict the ultimate winners and losers in AI- related industries,” Dimon said.

“We will not put our heads in the sand. We will deploy AI, as we deploy all technology, to do a better job for our customers (and employees),” he wrote.

JPMorgan has been at the forefront of Wall Street firms introducing AI at every level of its business. Last year, JPMorgan Chief Analytics Officer Derek Waldron gave CNBC an early demonstration into how it’s using agentic AI to speed up work and improve results for customers and shareholders.

In February, Dimon said AI was reshaping JPMorgan’s workforce and that the bank had “huge redeployment plans” for employees.

“We have focused on some of the ‘known and predictable’ and some of the ‘known unknown’ events,” he said. “But huge technological shifts like AI always have second- and third-order effects as well that can deeply impact society. … We should be monitoring for this kind of transformation, too.”

— CNBC’s Leslie Picker and Ritika Shah contributed to this report.

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Lucid Motors gets rave reviews from critics. But it’s sorely lacking customers.

That’s a problem the company can’t afford.

The Arizona-based electric-vehicle maker has top-shelf tech, deep-pocketed backers and highly praised cars. However, Lucid has struggled to meet production targets, and has been unable to steal the spotlight away from established luxury brands with century-old pedigrees.

Lucid is ramping up production of its high-end, three-row Gravity SUV, though it has sold only a few hundred units so far in 2025, according to a Cox Automotive report from mid-October. The Gravity’s production ramp has faced a slew of challenges, primarily supply chain shortages.

Lucid said it disputed sales figures from third-parties, calling those reports “completely inaccurate.”

“While we don’t break out model mix, Lucid Gravity deliveries are already in the thousands and will represent the majority of customer deliveries in Q4,” a Lucid spokesperson said in a statement.

A spokesman for Cox said the company stands by its numbers.

A Lucid Gravity coming off the line at the company’s factory in Casa Grande, Arizona

Lucid already has plans for another vehicle aimed more at the middle of the market, where it would compete with the top-selling Tesla Model Y SUV. And Lucid is investing in self-driving cars for consumers while working on a robotaxi fleet in partnership with Uber and Nuro, which makes self-driving tech.

In the process, Lucid is burning through a lot of money. The company’s third-quarter results were worse than Wall Street expected, with a net loss of close to $1 billion.

“Their gross profit has been getting kind of worse,” said Tom Narayan, an analyst at RBC Capital Markets. “A lot of people are doing the math. How long can the company keep losing cash?”

Adding to Lucid’s challenges is a tougher environment for all EV manufacturers. Demand has fallen short of expectations, and many automakers are pulling back. EVs have lost key support from the federal government, including a $7,500 tax credit, funding for charging and restrictions on state level programs that incentivize automakers to produce zero-emission vehicles.

A ‘fantastic car’

Lucid’s first vehicle, a sedan called the Air, is the most popular vehicle in its segment, according to Cox Automotive, which tracks the U.S. auto market. Through the third quarter, the Air was the third best-selling, full-size luxury sedan and the top selling electric sedan, according to the company. The Air is frequently a “critic’s pick.” No other EV can touch the 512-mile range of the Air Grand Touring, one of its top trim levels.

In 2024, Lucid delivered 10,241 vehicles, the majority of which were Air sedans. That was up 71% from 2023. By comparison, U.S. EV leader Tesla delivered 1.8 million vehicles in 2024.

Sales of sedans have consistently underperformed compared to those of SUVs, crossovers, and pickups, which now all but dominate the roads. Of the top 10 best-selling models in the U.S., seven are from those three segments, according to Edmunds.

“It was a fantastic car,” said Sam Abuelsamid, vice president of market research for Telemetry. “It still is a fantastic car. But it came to market at kind of the wrong time.”

Marc Winterhoff, interim chief executive officer of Lucid Group Inc., in a Lucid Air Grand Touring model in San Francisco, California, US, on Thursday, July 17, 2025.

Jason Henry | Bloomberg | Getty Images

In 2023, Tesla’s Model Y was the best-selling vehicle in the world, according to JATO Dynamics. Tesla sold more than 265,000 Model Y units through the third quarter of 2025, according to Cox Automotive. That’s about 100,000 more than Tesla’s Model 3 sedan, per the report. Among EVs, the Model 3 is unusually popular for a sedan. Behind the two Tesla Models, the three vehicles that round out the top five are crossovers — Chevrolet Equinox, Ford Mustang Mach-E and Hyundai Ioniq5.

The Model S — the Air’s closest Tesla competitor in terms of size, performance and price — sold just over 4,500 units so far in 2025, according to Cox Automotive.

The highest volume EVs, such as the Model Y, are also less expensive than the Air, which starts just above $70,000 and runs up to about a quarter of a million dollars. The Model 3 is nearly half that, starting at around $37,000. The average EV transaction price in November was just above $59,000, according to Cox Automotive.

“There’s just not enough of a market for those premium electric sedans right now,” Abuelsamid said.

Lucid sold 300 Gravity SUVs in the U.S. in 2025 through mid-October, according to Cox Automotive. Like the Air, the Gravity has a high price tag. Nevertheless, the company has said the Gravity stands to attract six times as many customers as the Air.

“We’ll see if that’s the case,” said Narayan. “The latest numbers I’ve seen show it kind of equalizing the sales of sedans.”

Lucid interim CEO Marc Winterhoff told CNBC in an interview that the company has seen “a very good uptick in demand when it comes to the Gravity as compared to the Air.” He added that most customers are configuring the car in ways that run the price above $100,000.

Production trouble

Demand might be strong, but Lucid also has to get the vehicle into customers’ hands. The launch of Gravity deliveries to U.S. customers in early 2025 was beset by shortages of key materials like magnets, aluminum and chips, Winterhoff said on the company’s third-quarter earnings call.

“We haven’t been able to produce as many as we wanted up until this point,” Winterhoff told CNBC. “We’re very confident right now that we solved those problems.”

Deliveries have risen for seven straight quarters, culminating in third-quarter deliveries seeing a 47% percent year-to-year jump. Lucid has added a second shift to the final assembly section of its factory to meet demand.

The company said demand has been resilient despite worries that the EV market is stalling after the federal EV incentive ended on Sept. 30.

“In October, our delivery numbers went up,” Winterhoff said. “Whereas in many other pure EV players or even EVs for incumbent players that also have [internal combustion] vehicles, the deliveries dropped down drastically.”

Still, analysts say it’s a tougher time to make EVs than it was when Tesla was ramping up the Model 3 and Model Y.

“They were the only game in town,” Narayan said. “So there wasn’t competition there. They also benefited from battery prices falling significantly. And they got a lot of government support. Today we’re in a very different world.” 

If gross profit keeps getting worse, Lucid will eventually have to return to investors, Narayan said. The company is currently about 55% owned by the Saudi Public Investment fund, according to FactSet.

In the third quarter, Lucid and the PIF agreed to increase a delayed draw term loan credit facility from $750 million to roughly $2 billion. A DDTL is a loan the company can draw on over time, rather than all at once. That brings Lucid’s total liquidity to $5.5 billion. The company has said it has enough to get through the first half of 2027.

CNBC tours Lucid Motors factory in Casa Grande, Arizona.

Andrew Evers

“So far, the Saudis have put many billions of dollars into Lucid, and they’ve been very patient through Lucid’s struggles as they try to ramp up production and sales,” said Abuelsamid. “It’s unclear how long they will continue to be patient.”

The company also received a $300 million investment from Uber in September to develop a platform for robotaxis with a third partner, autonomous driving tech developer Nuro. On top of that, Uber plans to buy 20,000 Gravity vehicles for the self-driving fleet.

Separately, Lucid has a partnership with Nvidia to develop what it calls the “the first true eyes-off, hands-off, and mind-off (L4) consumer owned autonomous vehicle.” L4 means Level 4, nearly the highest level of autonomy in the current system devised by the Society for Automotive Engineers.

“You need to invest first and then you reap the benefits later on,” Winterhoff said. “And therefore we have to do a lot of things in parallel.”

Smaller SUV on the way

Despite Gravity’s production challenges, the company is already at work on its next vehicle — a mid-size crossover priced closer to the industry average of about $50,000.

That could boost volumes, but deepen losses.

“If gross profit is negative at a vehicle transacting around $100,000 or more on average, what Lucid’s Air and Gravity are currently going for, what will it look like when the company is selling a vehicle that is closer to half of that?” Narayan said.

“One answer could be, well, it’s a much bigger scale, so you have better operating leverage,” Narayan said. The argument, he said, is that Lucid’s technology enables it to squeeze a lot more range out of a battery than competitors.

“Our vehicles are way more efficient by 30% to 40% than the competition,” said Emad Dlala, senior vice president of engineering and digital at Lucid. “That means a lower [bill of materials] cost. That means better margins.”

Dlala said the Lucid Air Pure has a battery size of a Tesla Model Y, but has a range of 420 miles. That’s about a hundred miles more than the Model Y.

Lucid said the money it’s spending goes to developing an array of technologies and manufacturing processes that are hard to copy.

“Lucid has about over 10 years of powertrain history,” said Dala, adding that the company has lots of patented technologies across powertrain, vehicle and software that leads to gains in efficiency. “This didn’t come overnight.”

Brand new Lucid electric cars sit parked in front of a Lucid Studio showroom in San Francisco on May 24, 2024.

Justin Sullivan | Getty Images

That extends to the way the cars are made.

“We use manufacturing processes here that no one else in the industry uses in powertrain,” said Adrian Price, senior vice president of operations at Lucid.

Price said Lucid brings much of the car-making process in house.

“We have a lot more of our own subassemblies,” Price said. “That’s also how we get the performance that other people don’t. A lot of that engineering is outsourced by other major automakers. Not only do we do the engineering, but we also do the manufacturing. And we can control some of the Lucid secret sauce by doing it in-house.”

One area where Lucid appears to lag competitors is brand awareness.

“A lot of people don’t know what Lucid is,” Narayan said. “That’s the biggest hurdle that they have.”

The company has given more thought to marketing and raising its profile in the luxury market, where it’s going up against names like Mercedes-Benz, Porsche and BMW.

“The buyer of a luxury brand, typically, they like things like heritage,” Narayan said. “The brand matters. So how do you create that from scratch?”

“We are very well known and have tons of accolades in the motor press,” Winterhoff said. “Everybody who’s interested in cars knows about it, but that’s not the majority of vehicle buyers.”

Lucid has begun a new marketing and advertising strategy for the Gravity, with actor Timothee Chalamet as its first “global brand ambassador.”

“We’re shifting from focusing on our vehicles, about the capabilities of our vehicles, to what does it mean to own a Lucid and what does it say about you?” Winterhoff said.

Winterhoff said he’s confident the company can successfully ramp the Gravity while building and eventually delivering its mid-size vehicle.

“That is the point where I think this is a sustainable business going forward,” he said. “We have a clear plan also to profitability.”

Watch the video to get an exclusive inside look at Lucid’s Gravity production and to find out what’s next for the automaker.

Correction: An earlier version of this article did not include attribution for Cox Automotive for Gravity SUV sales thus far in 2025. Lucid has disputed the figures. The article also incorrectly attributed the year of Tesla vehicle sales estimates from Cox Automotive. Additionally, the article incorrectly spelled the name of Lucid interim CEO Marc Winterhoff.

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Big banks including JPMorgan Chase and Goldman Sachs had just finished taking victory laps after a blockbuster quarter when concerns emerged from an obscure corner of Wall Street, sending a collective shiver through global finance.

Regional bank Zions late Wednesday disclosed a near total wipeout on $60 million in loans after finding “apparent misrepresentations” from the borrowers. The next day, peer Western Alliance said that it had sued the same borrower, a commercial real estate firm called the Cantor Group, for alleged fraud.

The result was a sudden and deep selloff among regional banks, drawing comparisons to the churn of the 2023 banking crisis that consumed Silicon Valley Bank and First Republic. This time around, investors are focused on a specific type of lending made by banks to non-depository financial institutions, or NDFIs, as the source of possible contagion.

“When you see one cockroach, there are probably more,” JPMorgan CEO Jamie Dimon said this week. “Everyone should be forewarned on this one.”

Concerns over credit quality had been simmering for weeks after the September collapse of two U.S. auto-related companies. JPMorgan, the biggest U.S. bank by assets, this week reported a $170 million loss tied to one of them, the subprime auto lender Tricolor.

But it wasn’t until a third case of alleged fraud around loans made to NDFIs that investors were jolted into fearing the worst, according to Truist banking analyst Brian Foran.

“You now have had three situations where there was alleged fraud” involving NDFIs, Foran said.

Dimon’s comments “really resonated with people who were like, ‘Oh, man, the tide went out a little bit, and now we’re seeing who was lacking their swim trunks,” Foran said.

What are NDFIs?

The episode cast a spotlight on a fast-growing category of loans made by regional banks and global investment banks alike. Rules put into place after the 2008 financial crisis discouraged regulated banks from making many types of loans, from mortgages to subprime auto, leading to the rise of thousands of non-bank lenders.

Moving riskier activities outside of the regulated bank perimeter, where failures are backstopped by the Federal Deposit Insurance Corporation, seemed like a good move.

But it turns out, banks are a major source of funding for non-bank lenders: commercial loans to NDFIs reached $1.14 trillion as of March, per the Federal Reserve Bank of St. Louis.

Bank loans made to non-bank financial firms were the single fastest-growing category, rising 26% annually since 2012, according to the St. Louis Fed.

“The surge in NDFI lending was really because all these different regulations added up to say there are a bunch of loans banks can’t do anymore, but if they lend to someone else who does them, that’s OK,” Foran said.

“We really don’t know much about these NDFI books,” Foran said. “People are saying, ‘I didn’t know it was so easy for a bank to think they had $50 million in collateral and find out they had zero.'”

‘Overreaction’ or early?

Part of what’s spooking investors is that, while some of the loan losses disclosed have been relatively small, they’ve been near total wipeouts, said KBW bank analyst Catherine Mealor.

“NDFI lending, because of the collateral involved, typically has a higher loss rate, and the losses can come very quickly and out of nowhere,” Mealor said. “It’s really hard to wrap your mind around these risks.”

Mealor said investors have been inundating her with questions around the level of NDFI exposures in her coverage universe, the analyst said. Firms including Western Alliance and Axos Financial are among those with the highest proportion of NDFI loans, according to an August research note from Janney Montgomery.

Still, regional banks are benefitting from an improving interest rate environment and rising mergers activity, which underpin valuations, Mealor said, adding she thinks this week’s stock selloff was an “overreaction.”

“You want to avoid companies that show up high in the screen for NDFI loans,” she said. “There are plenty of high-quality companies in the KRX that are trading at a massive discount.”

Correction: This article has been updated to remove an incorrect mention of losses at one of the regional banks tied to the alleged loan fraud.

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