President Donald Trump's new 25% tariffs on imported passenger vehicles, which analysts at JP Morgan have called "draconian," sent shares of Ford, GM, and Stellantis plummeting Thursday morning. While there are still unknowns about how the rules will be enforced, there's one clear winner: Tesla. The EV maker's stock shot up by 4% in trading on Thursday.So why are tariffs, which Wall Street believes could cost the auto industry as much as $82 billion and slash earnings at Detroit's Big Three by up to 60%, s ...

Elon Musk’s Tesla will get a major boost on key rivals in the auto sector after President Trump imposed 25% tariffs on all foreign-made cars and auto parts, according to financial analysts.Tesla manufactures all of the electric vehicles it sells in the US at plants in California and Texas – a key factor that should shield Musk’s pioneering company from the worst impacts of the tariffs.Meanwhile, competitors like GM and Ford – as well as international rivals like South Korea’s Hyundai and Germany’s Volkswage ...

Core Viewpoint - The announcement of a 25% tariff on foreign-made automobiles by President Trump is expected to significantly impact both US and European automakers, aiming to reduce reliance on foreign imports and enhance domestic manufacturing [1] Group 1: Immediate Impact on Automakers - The tariffs are likely to create short-term frustration among investors due to the lack of clarity around the tariff structure, which may unsettle financial markets [2] - Analysts from Wedbush anticipate price increases of $5,000 to $10,000 per vehicle depending on the model if the tariffs remain unchanged [3] - UBS analysts acknowledge that the new tariffs will exert meaningful pressure on both US and foreign automakers, potentially leading to reduced production in Mexico and Canada [6][7] Group 2: Historical Context and Long-term Considerations - Experts draw parallels to the 1963 "chicken tax," suggesting that while tariffs can influence consumer behavior, their long-term effectiveness is questionable [5] - UBS analysts highlight potential long-term benefits, such as tax deductions on auto loans for US-made vehicles and relaxed emissions regulations, although these benefits may take time to materialize [6][7] Group 3: Macroeconomic Perspective - Wells Fargo analysts provide a more optimistic view on inflation, suggesting that a stronger US dollar and excess manufacturing capacity in key trading partners could mitigate some cost increases [9] - Their models indicate a potential 0.6 percentage point increase in the year-over-year rate of consumer price inflation due to the tariffs implemented thus far [9] Group 4: Industry Adjustment - The automotive industry is entering a critical period of adjustment, with supply chains and pricing structures in flux, and the full consequences of the tariffs will not be understood until more details emerge [10]

Core Viewpoint - General Motors (GM) is facing significant challenges due to new tariffs imposed by the U.S. government, particularly affecting its operations and stock performance compared to competitors like Ford and Stellantis [2][3][7] Group 1: Tariff Impact - President Trump announced a 25% tariff on all cars not made in the U.S., which significantly impacts GM due to its high exposure to imports from Mexico [3][4] - GM's stock fell over 6%, underperforming compared to Ford and Stellantis, which saw declines of about 3% and 2% respectively [2][4] Group 2: Import Exposure - Mexico accounted for 16.2% of vehicle imports into the U.S. in 2024, the largest share of any country, which poses a risk for GM as it relies heavily on Mexican production [4][5] - Approximately 52% of GM vehicles sold in the U.S. were assembled domestically, while 30% were assembled in Canada and Mexico, and 18% were imported from other countries [5][6] Group 3: Competitive Position - Analysts suggest that Tesla and Ford are better shielded from the tariff impacts due to their assembly locations, while GM has the highest exposure to Mexico [4][6] - GM's reliance on Mexico and South Korea for production of small crossovers like Equinox and Blazer raises concerns about its vulnerability to tariffs [5][6] Group 4: Market Performance - GM's stock has decreased by 12% year-to-date, with a notable drop in late January due to investor concerns regarding tariff impacts not being addressed in earnings reports [7]

Group 1 - President Trump announced a 25% tariff on all cars not made in the United States, effective April 2, impacting the auto industry significantly [2][4] - General Motors stock fell approximately 6% in early trading, while Stellantis decreased by over 1%, while Tesla saw a slight increase and Ford's shares remained stable [2][3] - Deutsche Bank analysts indicated that Tesla and Ford are relatively insulated from the tariffs due to their vehicle assembly locations, whereas GM has the highest exposure to Mexico [3] Group 2 - The tariffs will apply to imported passenger vehicles, light trucks, and essential automobile parts such as engines and transmissions [4]

U.S. President Donald Trump speaks to the media in the Oval Office at the White House in Washington, D.C., U.S., March 26, 2025.After President Donald Trump said on Wednesday he would impose 25% tariffs on "all cars that are not made in the United States," he said his key advisor, Tesla CEO Elon Musk, had not weighed in on the matter, "because he may have a conflict."He added that Musk had never "asked me for a favor in business whatsoever."Musk serves as a senior advisor to Trump, having earlier contribute ...

Group 1 - The announcement of a new 25% tariff on all imported cars by the US President is set to take effect on April 2, referred to as "liberation day" [1][2] - The tariffs may lead to increased costs for American car manufacturers who source components globally, potentially resulting in lower sales [2][4] - Despite the optimism surrounding the tariffs, shares of General Motors fell by approximately 3%, while Stellantis saw a nearly 4% drop, indicating market concerns [3][4] Group 2 - The tariffs are part of a broader strategy by the US President to reshape global trade relations, including reciprocal taxes that match tariffs imposed by other nations [4] - Previous tariffs include a 20% tax on imports from China and 25% tariffs on Mexico and Canada, indicating a consistent approach to trade policy [5]

ToplineShares of American artificial intelligence leaders Nvidia and Tesla tumbled Wednesday, shedding hundreds of billions of market value and leading a broader selloff across big technology stocks, which have struggled throughout 2025.Jensen Huang, left, and Elon Musk appear together last decade.Corbis via Getty Images Key FactsNvidia stock and Tesla stock each dove more than 6% by mid afternoon, contributing heavily to a more than 1% decline in the benchmark S&P 500 and more than 2% drop for the tech-con ...

Market Performance - The S&P 500 rose 1.7%, reaching its highest level since March 7, and is now up 4% from its six-month intraday low set on March 13, although it remains 6% below its all-time high recorded in February [1][2] - The Dow Jones Industrial Average increased by 1.4%, gaining over 570 points, while the Nasdaq jumped 2.2%, both hitting their highest levels in two weeks [2] Trade War Impact - The market rally was attributed to "easing trade war angst," with reports indicating that President Trump's upcoming reciprocal tariffs will be more focused than initially suggested [3] - Trump's comments about potentially granting "a lot of countries breaks" from the tariffs further fueled investor optimism [3] Technology Sector - The "magnificent seven" technology stocks, including Tesla, Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia, saw significant gains, with Tesla leading the surge at nearly 11% [4] - Despite the recent bounce, Tesla remains the S&P's second-biggest loser year-to-date, with the magnificent seven index down about 12% in 2025 [4] Market Capitalization - Tesla added approximately $80 billion in market capitalization on the day of the rally, which is roughly twice Ford's total valuation [5] Individual Wealth - Elon Musk's net worth increased by about $15 billion during Tesla's surge, bringing it to an estimated $349 billion, although it is still $115 billion below its peak in December [6] Cryptocurrency Market - Bitcoin prices rose to their highest level since March 7, trading above $88,000, marking a roughly 15% increase from its March low, indicating an improving risk appetite among investors [7]

Group 1 - The National Highway Traffic Safety Administration (NHTSA) has initiated an investigation into approximately 1.3 million Ford F-150 pickup trucks due to a faulty gear shift that may lead to wheel lock-up [1][3] - The investigation was prompted by over 130 consumer complaints regarding unrequested gear downshifts while driving at highway speeds, causing rapid deceleration [2][5] - Complaints indicate that the trucks' rear wheels may temporarily lock, seize, or skid following the unexpected gear shift, which poses a risk of losing vehicle control [2][4] Group 2 - Ford is cooperating with the NHTSA in its investigation, although no crashes or fires related to the faulty gear shift have been reported so far [4]