From InvestorPlace: 2024-05-21 06:23:10

President Biden’s new tariffs on Chinese-made EVs may harm the industry and put EV stocks at risk. By increasing tariffs from 25% to 100%, he aims to protect U.S. EV makers but risks hurting consumers with higher prices, potentially slowing sales further.

One of the EV stocks at risk is Polestar Automotive (PSNY), a Chinese-owned U.S. automaker. With only 7,500 vehicles sold in the U.S. last year, the price of its Polestar 2 model may rise from under $50,000 to $80,000 under the new tariff regime, impacting its sales and expansion plans.

Tesla (TSLA), the world’s largest EV manufacturer, could face challenges due to the tariffs affecting its battery supplies sourced from China. Despite Tesla’s global sales success of over 1.8 million vehicles, the new trade policies could disrupt its plans for a $25,000 EV, potentially harming consumers.

Ford (F) is also impacted, as the automaker’s China sales saw a 31% increase last year, making it the second-largest market for Ford after the U.S. With Ford’s reliance on affordable batteries from China, the tariffs could delay its EV plans and hinder its profitability in the growing EV market.



Read more at InvestorPlace: The Biden Bombshell: 3 EV Stocks on the Chopping Block Due to China Tariffs