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Tesla shares jumped more than 7% on Thursday morning after President Donald Trump confirmed a new 25% tariff on all vehicles made outside the United States. The announcement dropped Wednesday and goes into effect next week. Traders across Wall Street moved fast, sending Tesla stock flying while Detroit automakers got hammered. The 25% import tax applies to every car not assembled in the U.S. And that’s why Tesla, which builds all of its cars domestically, suddenly looked like the safest bet in a messy situation. Investors didn’t hesitate. The reaction was instant. While Tesla climbed, Ford fell 3%, GM sank almost 8%, and Stellantis dropped over 2%. Analysts call Tesla the biggest winner Wall Street didn’t waste time picking sides. Daniel Roeska, an analyst at Bernstein, wrote Thursday, “Tesla wins, Detroit bleeds.” He called the company a “clear structural winner” and said its U.S.-based production base shields it from most of the damage. Daniel also warned that Ford and General Motors could lose up to 30% of their EBIT this year under the new policy. “For everyone else, this is a margin reset and real drag on near-term earnings power,” he said. Joseph Spak, an analyst at UBS, said Tesla and Rivian are in better shape than the rest of the auto industry, since both assemble their vehicles entirely in the United States. He said they could “fare better” once the tariffs take effect. Rivian’s stock also jumped nearly 5% Thursday. But Joseph didn’t sugarcoat it for the others. He said, “There will clearly be some pain.” Itay Michaeli, an analyst at TD Cowen, said Tesla looks like a “relative winner” thanks to its strong domestic sourcing. He pointed out that this especially benefits the Model Y, which competes in the midsize crossover category. That segment is now hit hard,…

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Filed under: News - @ March 27, 2025 4:26 pm