Analysts Believe Tesla is Insulated from New Auto Tariffs

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Tesla, Inc. (NASDAQ: TSLA) is facing a challenging landscape as international trade tensions impact the auto industry. Elon Musk recently expressed concerns over the rising costs of Tesla parts due to tariffs on imported components.

Despite these challenges, analysts maintain that Tesla’s domestic production offers some protection against the negative effects of these tariffs. Meanwhile, Canada has taken steps to counter U.S. trade policies by suspending electric vehicle rebates for Tesla, adding another layer of complexity to the situation.

Analyst Believe Tesla Insulated from Tariff Challenges Despite Musk Warning of Increased Costs

Elon Musk has raised alarms about the financial strain that international tariffs are placing on Tesla. The tariffs, which affect parts sourced from various countries, are leading to significant cost increases. These rising expenses could potentially impact the company’s pricing strategy and profit margins. Musk’s concerns highlight the broader implications of global trade tensions on the automotive industry, emphasizing the need for strategic adjustments to navigate the evolving economic landscape.

Despite the challenges posed by tariffs, analysts at Wedbush Securities and Canaccord Genuity believe that Tesla remains relatively protected from the adverse effects. Tesla’s U.S.-based production and assembly operations for domestic vehicles serve as a buffer against the full impact of international trade disputes.

In response to U.S. tariffs, Canada has decided to freeze $43 million in electric vehicle rebates for Tesla, excluding the company from future incentives. This move is part of Canada’s broader strategy to counteract trade policies enacted by the Trump administration.

The suspension of rebates could impact Tesla’s sales in the Canadian market, as consumers may be deterred by the lack of financial incentives. This development underscores the complex interplay between international trade policies and market dynamics.

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TSLA Stock Brief

Tesla’s stock has shown notable movement amid these developments. As of March 27, 2025, the stock opened at $272.48 and reached a high of $287.5, with a current price of $287.42. This represents an increase from the previous close of $272.06.

The stock’s 52-week range spans from a low of $138.8 to a high of $488.54, reflecting significant volatility. Key metrics such as a market cap of $924.49 billion and a trailing PE ratio of 140.89 indicate strong investor interest, although the recommendation remains to hold. Analysts’ target prices suggest potential for future growth, with a mean target of $331.92.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.

About the author

Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.





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