Since tariffs are likely to have a lower negative impact on Tesla (TSLA) than on many of its peers, the duties can enable Elon Musk’s firm to gain market share, Morningstar Energy and Resources Strategist Seth Goldstein told Schwab Network recently.

Why TSLA Will Be Hurt Less by Tariffs Than Many Competitors
Tesla assembles all of its EVs in the U.S., while it also manufactures all of its battery packs in America, Goldstein reported. On the other hand, the battery cells that it imports, along with the cathodes and anodes that it obtains from abroad, could all be made more expensive by tariffs, he reported. Moreover, the steel and aluminum that it imports will certainly be hit with tariffs.
In light of the latter points, TSLA will have to raise its prices in response to tariffs, but it may be able to increase them less than its competitors, potentially enabling it to increase its market share, Goldstein asserted.
TSLA’s Deliveries Can Improve as the Year Progresses
Since the automaker’s deliveries in China, the U.S., and Europe fell year-over-year in January and February, its deliveries likely dropped in the first quarter versus the same period a year earlier, Goldstein believes. Still, the strategist expects its deliveries to improve in Q2 after the enhanced Model Y reached all of its markets in March.
And with the automaker due to release a more affordable EV later in 2025, its deliveries can increase further in the second half of the year, Goldstein predicted.
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Written by Larry Ramer of Yahoo Finance
Shared by Golden State Mint on GoldenStateMint.com