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

[PungoteagueDave]

Why? Did you sell?

You don't have to sell to have a loss. The loss is just as real whether you sell or hold. Value is value, regardless of what was originally paid. Any price recovery is a new gain subsequent to a decision to hold at a given price - that decision to hold is in reality a buying decision, because you could just as easily put that cash in your pocket. Investment fallacy 101.

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[CyberGus]

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

That works both ways. When there is a significant economic interest between nations, they will always find a way to cooperate no matter how mad they are at each other.

That said, it's never good to have single-sourced products, particularly for critical goods.

 

[hemiarch]

I agree it’s a loss. For many of us, the decision to “rebuy” by not selling at a given price isn’t a conscious choice.
I’ll level with you guys, I didn’t know on Wednesday morning I needed to pull all the fire alarms and cash out everything stock related. Even if I did it couldn’t have happened in five minutes.
If I had known this, I would have done it. Obviously I wasn’t smart enough. Congrats to those of you who were. I do not consider myself a fool but I can see how someone would reach that conclusion looking at my balance sheet this week.

 

[Cybertruck26]

That works both ways. When there is a significant economic interest between nations, they will always find a way to cooperate no matter how mad they are at each other.

That said, it's never good to have single-sourced products, particularly for critical goods.

100%, I agree with that

 

[TheLastStarfighter]

The problem with tariffs is that the domestic production depends on foreign competition and/or raw materials to keep the prices down.

If there's no competition, then there's little stopping suppliers from raising their prices, as the tariffs trap their customers onto an island.

https://www.thefabricator.com/thefabricator/blog/metalsmaterials/2018-steel-year-in-review

Prices of inputs will go up. And Tesla has shown they will keep the price anywhere that matches their inputs... Maybe their drop in demand will keep them from raising the retail prices.

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-Crissa

Actually, since most of the affected countries have significant tariffs on US products, these are mostly leveling the playing field. I don't have a problem with them from a competitive standpoint, and they may help to encourage domestic production and/or dropping foreign tariffs to open more export markets.

For me the problem with tariffs are they are effectively a sales tax, which is both costly and cumbersome to implement and collect, and also regressive (affecting you more the lower your income). I'm fundamentally against sales taxes and strongly in favor of a clear, simple, and progressive income tax. Government income should come entirely from that and sale of service.

 

[Vigorous1982]

Care to expound on that with a meaningful response?

You’re not intelligent enough to warrant one. The emoji speaks for its self. Connect the dots and FO

 

[REM]

You’re not intelligent enough to warrant one. The emoji speaks for its self. Connect the dots and FO

Ah, petty name-calling after not being able to articulate a point of view. That checks out for standard internet discourse.

 

[M0unt41nm4n]

It's not a loss if you don't sell, so fear not.

Make a practice of not checking your stats for the next two weeks...in the end, you will be a wiener, errrr...winner.

Perfect time for a shopping spree and Santa spent some some serious dough, today...have to plan ahead when you are 487 years old and hope to double that age, need to keep the feed troughs full for the reindeer.

Life is ALWAYS good.

Santa… I took your advice and I got myself a new set of Ping golf clubs today! I was gonna ask you for them, but golf season is starting now and I didn’t want to wait. ?

 

[Dahongfei]

The S&P is still up 100% over 5 years, historically beating its averages by double. This is a slight correction and healthy. So if you need to make lifestyle change from this, you have a poor planner. It will shake out to green soon, I’ll gladly buy VOO.

 

[hemiarch]

The S&P is still up 100% over 5 years, historically beating its averages by double. This is a slight correction and healthy. So if you need to make lifestyle change from this, you have a poor planner. It will shake out to green soon, I’ll gladly buy VOO.

Very reasonable. The whole expectation as I understand is that the tariffs will be very short term because they are so extreme that the amount of pain they inflict on both countries will force a reckoning and readjustment quickly.
I’m just not necessarily convinced that will happen in several important cases which will have effects on certain parts of the market more than others. I imagine which parts exactly those are will be quite hard to predict.
Whether you agree with this tariff plan or not, one thing is for sure, in two years, world economics and stock markets will look quite different than they do today because of it.
I agree that most indexes and funds like SPY, VOO, Berkshire or even nasdaq funds should likely ultimately get stronger when this is all said and done but I think trying to guess which stocks will profit the most from all this turmoil is still gambling.
So yes, buy the VOO I think but don’t go nuts, Invest, don’t trade.

 

[sefar]

besides the direct impact of tariffs, there is the retaliatory effect which we have already seen in reduced global sales. In addition, Japan and others are selling our debt which has a negative effect on the US Dollar. I *think* this impacts Tesla in terms of parts purchased abroad by making them more expensive. Maybe that means that Teslas sold abroad are now more attractive?

I don't have an economics degree, Google or otherwise, so others may correct me on this.

 

[hemiarch]

I think a negative effect on the US dollar is exactly what they are hoping for

 

[h20palmer]

I will see if I can find it. There was a chart showing roughly the $ increase by car manufacturer (I do not know the legitimacy of it across all models) but it showed Tesla with a number all the way down all manufacturers based on import of parts or vehicles

 

[hemiarch]

I will see if I can find it. There was a chart showing roughly the $ increase by car manufacturer (I do not know the legitimacy of it across all models) but it showed Tesla with a number all the way down all manufacturers based on import of parts or vehicles

Of course it does

 

[h20palmer]

HERE IT IS I found it. Now I have not fact checked this and I do not know if it is actually Yahoo Finance.

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