Tesla will most likely be able to come to terms with the new 25% tariffs on cars - Elon Musk's company is less dependent on foreign components than other car manufacturers.
UNN reports with reference to Reuters.
Tesla was the only automaker trading in positive territory on US trading on Thursday. At the same time, shares of many automakers fell amid expectations that a 25% duty would undermine the global auto industry.
Analysts explain:
The supply chain and financial performance of the electric vehicle manufacturer may not be affected by the widespread levies that will affect global supplies of both cars and auto parts to the United States.
This is mainly due to the company's production and supply chain being mostly inside the country.
Although Tesla does import some parts from around the world, it is less dependent on foreign components than other automakers selling in the United States.
All Tesla cars sold in the US are manufactured in the United States. For comparison, Toyota imports 55% of the cars sold in the United States; GM imports 48% of the cars for sales in the US, according to a Bernstein study. Much of the imports come from Canada and Mexico.
Let us remind you
In February, Tesla's sales in Europe fell by 40%, while the electric vehicle market grew by 26%. Tesla's market share fell to 1.8% due to the aging model range and political scandals.
Donald Trump announced the introduction of a 25% duty on all imported cars to the USA from April 2.