Tesla, Inc. shares are trading lower following the announcement that tariffs on all products from Canada, Mexico, and China will take effect.
The Details
- A 25% tariff has been imposed on all imported goods from Canada and Mexico, along with an additional 10% tariff on goods from China.
- Energy exports from Canada will be subject to a reduced tariff of 10%.
- The tariffs are expected to impact the auto industry significantly, with the U.S. importing roughly $87 billion in motor vehicles and $64 billion in vehicle parts from Mexico, and around $34 billion in motor vehicles from Canada.
Impact on the Electric Vehicle Industry
The electric vehicle industry may be particularly affected, as companies could depend on imported components like batteries and semiconductors. These increased costs may ultimately be passed on嫡 to consumers.
Response from World Leaders
- Trump has stated that while Americans might feel “some short-term pain” from the tariffs, in the long run, the U.S. has been “ripped off by virtually every country.”
- Canadian Prime Minister Justin Trudeau has retaliated by imposing tariffs on American products, specifically a 25% tariff on around $105 billion worth of U.S. goods.
Recent providence from Tesla
- Last week, Tesla announced fiscal results for the 2024 fiscal-year and fourth-quarter.
- For the fourth-quarter, Tesla reported adjusted earnings per share of 73 cents, missing analysts’ estimate of 76 cents.
- The company announced sales of $25.70 billion, missing analysts’ estimate of $27.26 billion.
- Tesla also reported a 7% year-over-year decline in fourth-quarter production, while deliveries increased by 2% compared to the same period last year.
Current Stock Price
At the time of writing, Tesla stock is trading 6.00% lower at $380.19.