As apolitically as possible, how is Tesla affected by Tariffs?

[hemiarch]

You guys are the best. Always feel better chatting on here.

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[Dahongfei]

You guys are the best. Always feel better chatting on here.

A lot of us are old and have seen numerous market cycles now. The rich get richer during them. The true wisdom comes when being able to filter the noise and double down on your beliefs.

 

[hemiarch]

So, many teslas are built overseas though right? Giga Shanghai, Giga Berlin etc.
Will those cars be subject to tarifsf or are those all specifically for sale abroad?

 

[rtfitch]

So, many Teslas are built overseas though right? Giga Shanghai, Giga Berlin etc.
Will those cars be subject to tariffs or are those all specifically for sale abroad?

Those autos are built IN the country where they will be sold so that they are exempt from the tariffs that those countries would levee if Tesla exported to them. Elon was way ahead of the curve in doing so and Tesla has been dealing with tariffs in reverse for years.

 

[AZCYBER]

I lost a lot of money today. I know that for sure. Of course, that extends way beyond Tesla.

Why? Did you sell?

 

[Beetlebug62]

From my CT built in Feb. So, 90% content is North American. I suppose some of the stainless steel has to be imported. Aluminum for the castings, mostly is recycled, so could be US-sourced. Where is the AI4 chip made? Taiwan? Tesla is in better shape than most, but not immune.

 

[hemiarch]

Is that how it’s determined? Percent of parts made abroad?

 

[YDR37]

So, many teslas are built overseas though right? Giga Shanghai, Giga Berlin etc.
Will those cars be subject to tarifsf or are those all specifically for sale abroad?

The Teslas made in Shanghai and Berlin are not sold in the US, so no impact from US tariffs.

However, China just imposed large retaliatory tariffs on US imports. This will directly affect the Model S and Model X in China, since those models are imported from the US, as per post #7 above. The prices of those models will presumably now go up in China, and presumably sales will go down. However, the Model S and Model X weren't big sellers in China anyway, so the impact to Tesla should be small.

The vast majority of Teslas sold in China are Model 3 and Model Y; those are made in Shanghai, so no direct impacts from Chinese tariffs. The bigger concern for Tesla at this point is brand image. Now that a full-scale trade war has erupted between the US and China, it is possible that Chinese consumers will perceive American brands (like Tesla) unfavorably, even if they have manufacturing operations in China. As of 2024, China was Tesla's largest market (more Teslas were sold in China than in the US), so a negative change in Tesla's brand image in China could have significant impacts.

 

[YDR37]

Is that how it’s determined? Percent of parts made abroad?

If a complete vehicle is imported to the US, it is subject to a tariff. Tesla doesn't import vehicles to the US, so no effect there.

If a vehicle is assembled in the US, but certain parts are imported, those parts are subject to a tariff. Tesla does use some imported parts in its vehicles, so this does affect Tesla.

 

[Vigorous1982]

The one thing I want to mention is that tariffs are primarily supposed to be used to correct disparities in trade agreements between two or more nations.

They are only effectively if the initiating country actually sticks to their guns long enough for the opposing nations to yield and level the field again; to which the tariff is removed and new trade agreements are ratified.

I sincerely hope we stick to our guns long enough to bring a net positive outcome. The people who are complaining the most don't understand how ugly the alternative is: continuing to get shafted left and right just like we have been for ages

Tariffs also drive domestic manufacturing back to levels they should be. For many decades we have outsourced manufacturing to an extremely ugly degree, and now, on the verge of hyperinflation, we are reaping the due reward of it.

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[Cybertruck26]

I think the important thing to remember, too, aside from our beloved Tesla's, is the national security ramifications that covid showed us. In the modern digital world, and with many components and chips coming from overseas, it put the US in a very precarious and vulnerable situation. We would have to rely on other countries if we were ever in a major conflict. In WWII, the US resorted to drastic measures to increase and maintain production/manufacturing, but it was almost all domestically done.

I know this whole thing will be rough in the beginning, but to echo so many... it will pay off in the long run. Stay positive! Buy low, sell high

I for one have been putting a good amount into the S&P 500, which long term, should have great returns.

 

[REM]

??

Care to expound on that with a meaningful response?

 

[hemiarch]

https://www.facebook.com/share/r/1DM1NjsaLJ/?mibextid=wwXIfr

 

[DrPhyzx]

It’s all just paper money. Just like With Covid downside, we will come back and even better than before.

For sure, except for people who are within a few years on either side of retirement and are now, or will soon, be living off of liquidating assets. Those folks have to make serious lifestyle changes when the market goes down 20%.

 

[PungoteagueDave]

It absolutely IS a loss )or gain) every day when a stock goes up or down, you sustain the actual loss. The old idea that you have to sell to take a loss is simply wrong. I teach finance - here's the deal - every time you decide not to sell a liquid stock at the strike price available right now, you are making a decision to purchase it at that price. Public shares in most companies are equivalent to cash and can be converted into cash in seconds.

Folks kid themselves with this fallacy all the time - but that's all it is - kidding themselves and choosing to live in oblivion. The only relevant hold/sell question, is "Would I buy it again at this price?" because the loss is already in the investment and what you paid means not a single thing except for tax consequences.

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