Ives: Potential auto tariff delay is “good news” for Tesla and the Big Three

Wedbush analyst Dan Ives wrote in a note this morning that the “concept of a US made car with all US parts is a fairy tale fictional narrative,” so he considers potential tariff relief to be “good news” for Tesla, as well as GM, Ford, and Stellantis. Despite manufacturing its cars for the US market in the US, Tesla still relies heavily on parts made in other countries, including Canada and Mexico. Ives wrote:

“While Tesla is in a much better situation relatively speaking... the auto tariffs are a complicating factor that could disrupt the supply chain and add cost inputs at a time Tesla and Musk are trying to balance its operations globally.”

And Tesla has a lot of other problems to worry about beyond tariffs.

Ives estimated the price increases resulting from the tariffs — $5,000 on the low end and $10,000 to $15,000 on the high end — would cause demand destruction of 15% to 20% for the US auto industry this year.