From Morningstar: 2025-03-27 11:32:00

US President Donald Trump announced 25% tariffs on automobiles and auto parts, only applying to the value of content made outside the US. Tesla shares rose slightly on the news. Tariffs will likely raise auto prices for consumers, but Tesla, which domestically manufactures its autos, will see less impact. Tesla sources some parts subject to tariffs, affecting production costs. Morningstar maintains a fair value estimate of $250 per share for Tesla.
The latest tariff news is slightly positive for Tesla, as it will likely raise costs more for competitors. Higher prices for other automakers could lead to higher sales volumes for Tesla. However, deliveries are down in Tesla’s key markets, possibly due to consumers waiting for new models. Second-half growth may offset first-quarter declines, leading to overall growth in 2025.
Tesla is set to report first-quarter deliveries soon. Despite some decline, the company may see growth in the second half of the year. Morningstar’s fair value estimate for Tesla remains at $250 per share. The author or authors do not own shares in any securities mentioned in the article.



Read more at Morningstar: Tesla: We See Offsetting Impacts From US Tariffs