TSLA
🚗 Elon Musk acknowledges that Trump’s proposed 25% tariffs on non-US made cars and parts will have a ‘significant’ impact on Tesla, despite potential benefits for US manufacturing.
🏭 The policy aims to incentivize US production, potentially benefiting Tesla’s US factories, but the origin of parts remains a critical factor, as tariffs apply to imported components as well.
💰 A unique aspect of the proposal includes making financing interest for 100% US-made vehicles tax-deductible, potentially boosting demand for qualifying cars, though Tesla’s eligibility regarding parts sourcing is unclear.
@bernardodegarcia:
“Elon Musk declared that the new automobile tariffs from President Donald Trump will have a significant impact on his electric vehicle company. In a publication on X, Musk affirmed that Tesla does not emerge unscathed; the impact of the tariffs on Tesla remains significant. As we know, Trump declared yesterday that the 25% tariffs would apply to all cars not manufactured in the United States, including parts. Think not only about vehicle companies but also about Advance Auto Parts; perhaps it could be very interesting now. We analyzed it last weekend. Think also about companies dedicated to… O’Reilly? No, no, it wasn’t O’Reilly… insurance companies dedicated exclusively to these types of markets. I don’t remember, but I was thinking of one in London. Anyway, Musk, who has maintained a close relationship with the president, was not consulted on the matter because, obviously, he could have a conflict of interest. He wouldn’t just potentially have one; he obviously would. But it’s curious because Tesla is rising by 0.6%, while GM, Ford, and the rest are falling sharply. Almost the most interesting thing in all this, Trump said, ‘Okay, no incentive if you buy an electric vehicle.’ I’m going to apply a 25% tax to companies if they bring parts or cars from abroad to the United States so they manufacture in the United States. Approximately, they can take 3 years to go from 0 to 100 in manufacturing, but there are many GM plants producing at 60%, and not producing more because, obviously, it’s much cheaper to produce abroad. Okay, perfect. Well, this will cause jobs to move from abroad inward without needing to build more plants, at least right now in the short term. But the most curious thing, which isn’t usually mentioned, is that Trump ended up saying and affirming in the press conference that now, if you buy a vehicle Made In USA, if you buy a vehicle that is 100% made in the United States, and not that the parts are made abroad and then assembled in the United States—that’s cheating, and obviously, there the companies have to pay that 25% tariff—if you buy a car made in the United States, what you will obtain is the financing; the interest you pay on the financing of that vehicle, if you go to the bank, if you finance it through the vehicle company, will be free because you can deduct it from your taxes. So, I don’t know if you see it, but this is greatly harming all vehicles, all vehicle companies that manufacture outside, and greatly benefiting companies that manufacture inside.”
Watch the exact part of the video where @bernardodegarcia talks about Tesla here:
Watch the video on YouTube
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