US EditionIs Tesla Truly Immune to Trump’s Auto Tariffs? Yes and No.
- On Wednesday, President Donald Trump announced new 25% auto tariffs, set to begin next week on April 2, 2025, impacting cars and car parts imported into the U.S.
- These tariffs are expected to disrupt the global automotive industry, potentially raising vehicle costs in the United States and affecting automakers' earnings, as companies import 40 to 50 percent of car parts.
- Tesla imports lithium-ion batteries from China's Contemporary Amperex Technology Ltd. And automotive parts from South Korea, Japan, and Mexico, but analysts believe Tesla, with its substantial U.S. Sourcing and domestic production, may be a relative beneficiary compared to other automakers like Ford and General Motors, whose stocks declined following the tariff announcement.
- Elon Musk stated on Wednesday that the tariffs would affect the price of parts in Tesla cars coming from other countries and that the cost impact is not trivial, despite Trump suggesting the duties could be net neutral for Tesla and denying that Musk advised him on the tariffs.
- While analysts like Bernstein's Daniel Roeska call Tesla the "clear structural winner" and TD Cowen's Itay Michaeli notes Tesla's domestic sourcing makes it a relative winner, the company faces eroding competitive positions in Europe and Canada due to political sentiment, reduced EV incentives, and a growing protest movement against Musk's political influence, potentially impacting sales.
24 Articles
24 Articles
Is Tesla Truly Immune to Trump’s Auto Tariffs? Yes and No.
It shouldn’t come as a surprise that Tesla, helmed by the Trump administration’s “First Buddy” Elon Musk, has been largely spared by incoming tariffs on foreign-made automobiles. The electric carmaker’s localized manufacturing will be its saving grace amid incoming levies on imported cars. However, like the rest of the U.S. carmakers, Tesla could still face higher costs on auto parts imported from tariff-hit nations. In what represents the lates…
The 25% Auto Tariff benefits Tesla
Kleptocracy is in the open Several analysts on Wall Street see a clear winner emerging from President Donald Trump’s new auto tariff policy: Tesla. Trump announced on Wednesday that all cars not made in the U.S. would be slapped with a 25% tariff...
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