Elon Musk’s Tesla will receive a large incentive for the main rivals in the vehicle sector after President Trump set 25% fees for all foreign cars and parts of the vehicle, according to financial analysts.
Tesla produces all the electrical vehicles that sells in the SH.BA in plants in California and Texas – a major factor that should protect the company pioneers of musk from the worst fees.
Meanwhile, competitors like GM and Ford – as well as international rivals such as South Korea Hyundai and Germany’s Volkswagen – are likely to suffer.
“Tesla wins, Detroit Bleeds,” analysts said at Bernstein Research Firm on a Note Thursday.
Ford and GM can face 30% decline in profits before interest and taxes (EBIs), a major amount of benefit, in 2025 as a result of tariffs, according to note.
“Tesla is a clear structural winner: localized, strong market, better isolated from the risk of trade,” analysts added. “For everyone else, this is a reset of the difference and the true delay of the short -term profit power.”
Tesla’s shares increased by nearly 4% in Thursday’s trade, while all three of them suffered. GM was 8%, Ford Ra 4%and Stellantis, who owns Jeep and Chrysler brands, fell nearly 3%.
In total, Bernstein estimates that taxes will result in “up to $ 110 billion in annual tariff costs” for vehicle manufacturers, which will force the manufacturers to eat either higher costs or to pass them to customers.
Vehicle prices will see an average increase of $ 3,700, according to the firm’s forecasts.
Morgan Stanley analyst Adam Jonas set even higher costs with nearly $ 6,000 per vehicle.
Of the main automobiles, Tesla is “less exposed to tariffs”, according to CFRA Garrett Nelson analyst.
He noted that Tesla was named “The Most Car Made from America” from 2022 to 2024 by Cars.com.
“Tesla has mainly regaled vehicle production and shipments by creating a manufacturing presence and auxiliary parts in all three major US markets,” Nelson said.
The White House said it expects tariffs to generate $ 100 billion in annual tax revenue, as well as increase domestic production by Nudging companies to build more state plants.
Some parts of the vehicles that are in accordance with the US-MEXIC-KANDA “Trade Agreement” will be left without tariffs “while the Congress Department works to calculate fees for their non-non -.ba content.
“For years, we have been removed from almost every country in the world, both friend and enemy. But those days are over – America first !!!” Trump wrote in a social post of truth on Thursday.
Tesla is not fully immune from tariffs and will still face some higher production costs from the use of imported parts.
Musk minimized the notion that tariffs were a net positive for Tesla.
“Important to note that Tesla is not unsafe here. The impact of tariffs on Tesla is still important,” Musk wrote to X.
Trump has already set a 20% fee for all imports from China – whose companies have increasingly challenged Tesla’s predominance in the EV sector.
Both the US and Canada impose 100% fees on electrical vehicles made by the Chinese, which effectively blocked them from the market.
However, firms like Byd have given up on Tesla’s leadership in the Chinese, Europe and other markets.
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