Shares of British luxury carmaker Aston Martin fell as much as 10% Monday after the company issued a fresh profit warning, citing industry challenges and uncertainties surrounding tariffs.

Declining Sales and Financial Outlook

Aston Martin, famed for its association with James Bond, expects 2025 total wholesale volumes to decline by a “mid-high single digit percentage” compared to last year’s 6,030 units. The automaker also revised its outlook, stating it no longer expects positive free cash flow generation in the second half of the year and has launched a review of future costs and capital expenditures.

Analysts had forecast an EBIT loss of approximately £110 million ($147.8 million). The stock is down roughly 29% year-to-date.

Impact of Tariffs and Supply Chain Pressures

The company cited several macroeconomic pressures, including:

• Uncertainties from U.S. tariffs and the quota mechanism limiting British car exports
• Changes to China’s ultra-luxury car taxes
• Rising supply chain pressures

Under the U.S.-U.K. trade deal reached in May, tariffs on 100,000 British-made cars annually are capped at 10%, but Aston Martin warned that the quota mechanism complicates forecasting for this year and potentially future quarters.

Calls for Government Support

Aston Martin said it is engaging with both the U.S. and U.K. governments to secure clarity on tariffs but urged more proactive support from U.K. lawmakers to protect small-volume manufacturers. The company highlighted its contribution to thousands of jobs and the wider UK automotive supply chain.

A U.K. government spokesperson reaffirmed that the automotive sector remains a priority under the trade deal, emphasizing that the 10% tariff protects jobs and encourages continued investment in automotive manufacturing.

Investor Reaction

At 11:44 a.m. London time (6:44 a.m. ET), Aston Martin shares were down around 7%, reflecting investor concern over the company’s revised outlook and global economic uncertainties affecting the luxury car market.