By Ryan Felton
Tesla Chief Executive Elon Musk says the electric-car maker won't be "unscathed" by President Trump's 25% auto tariffs. But the stock-market reaction suggests the car company might be able to better navigate them than its American rivals.
Tesla's stock climbed more than 4% in morning trading Thursday, while shares in GM, Ford and Jeep-maker Stellantis fell as investors digested the news of the new import duties on foreign-made cars that go into effect next week.
"To be clear, this will affect the price of parts in Tesla cars that come from other countries," Musk wrote on his social-media platform X. "The cost impact is not trivial."
While Trump said Musk didn't have any influence on the auto tariffs, the Tesla chief is a close adviser to the president and was a major financial backer to his campaign.
Tesla builds all its U.S.-sold cars at its factories in California and Texas, making its exposure to tariffs more limited than other automakers, who tend to import assembled vehicles from Canada, Mexico, Europe and Asia, Deutsche Bank analysts wrote in a note Thursday.
The company sources wire harnesses in Mexico, as well as steel and aluminum, from other countries. Still, Deutsche Bank analysts said: "we don't expect a significant impact" on prices.
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(END) Dow Jones Newswires
March 27, 2025 11:56 ET (15:56 GMT)
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