Why Tesla and CEO Elon Musk don’t see Trump’s auto tariffs as a problem

Here and smokers abroad, they smoke, and 25% tariffs for foreign cars and some car spare parts are smoking. But one carmaker is Tesla.

Tesla (:Stake) shares have jumped 5% in early trade as a competitor GM (Waterfall) vibrated almost 7% and FORD (Knock) 3%.

Outside of Elon Musk’s issue, there are several other reasons for the leadership of Trump and Dogs, which is a trump’s automatic policy on both tariffs and EVS, it may not be a problem.

The main reason for tariffs will probably not affect Tesla, the company’s localized production. Although the company operates Gigafacties in China and Germany, the EVs built there are sold in the United States.

Tesla’s US sales vehicles are made exclusively in Fremont, Calif., Location or in Texas in Giga Austin. Rivyan (Rnvn) and Lucid (Impudent) The only other cars are the only 100% of their vehicles in the United States for US buyers. For comparison, 77% of Ford’s cars have been made in the United States, followed by Stellanciers (57%), Nissan (52%) and GM (52%).

Read more: Latest news and updates on Trump Tariffs

TD Cowen’s Itay Michaeli believes it makes Tesla in the “Relative Winning” tariff wars.

“Tesla Relative Beneficiary, which has been granted 100% of the US source, through a substantial source of the United States, which competes in the medium-term intersection section, where about 50% of the vehicles are located.

Trump said at his press conference last night that he did not consult with automatic tariffs about Mushk, as the CEO “can have a conflict.”

Despite the relative winner of the situation, the emans of some companies are slightly worried. In A non-signed letter of the US trading representative Jamieson Greer has been submitted last weekThe company has warned tariffs, can lead to US export colleagues for vengeance and higher prices that can only be internationally.

Musk added Last night in X These Tesla “is not connected here”, and that the impact of tariffs on the company is “still significant.”

Investors, at least, do not agree with Musk’s external assertion, although the General Director has not developed how or why the impact will be. “

A field that can worry about Mushkin and Teslay, Federal EV tax credit, which allows $ 7,500 to discount consumers who buy or rent clean EVS.

Tesla probably would not have existed if not for that tax loan, which the company used for years to use the Obama administration for years. EV Tax Credit has been extended and improved in 2022.