Tesla (TSLA) +2% Tesla shares bounced after a rough Monday, despite being down 36% in Q1 — the worst Q1 in company history. Investors are now eyeing its Q1 delivery report due Wednesday, with Street estimates hovering around 380,000 units . Analysts have been revising expectations lower amid backlash over Elon Musk’s role in Trump’s administration. Chinese EV Makers Up XPeng (XPEV) +1.6% : Delivered 33,205 vehicles in March — its fifth straight 30k+ month. NIO (NIO) +1.6% and Li Auto (LI) +1.4% also gained on strong March deliveries. Nvidia (NVDA) -0.6% Still under pressure after a 19.3% Q1 drop , its worst since 2022. Investor worries over AI spending, tech valuation, and trade tensions are weighing heavily. Johnson & Johnson (JNJ) -5% Fell after a Texas judge dismissed J&J’s third bankruptcy attempt to settle talc-related lawsuits via Chapter 11. PVH Corp (PVH) +18.9% Shares surged after Q4 earnings beat expectations ...
Key Takeaways for Investors:
New 25% Tariff on All Auto Imports: President Donald Trump signed a proclamation to impose 25% tariffs on all imported cars, effective April 3. The move escalates trade tensions and is expected to raise car prices for US consumers.
Canada & EU in the Crosshairs: Trump warned of even steeper tariffs on Canada and the EU if they coordinate economic actions against the US. Canada, which sent nearly US$35 billion in auto exports to the US last year, is likely to be hit hard.
Tesla Gains from Domestic Production: Tesla is seen as the biggest winner in this tariff war. Its EVs are manufactured in Texas and California, largely shielding it from the auto import levies. Ford may fare better than foreign brands too, with 80% of its US sales made domestically.
Wall Street M&A Slows: Despite hopes of a Trump-era dealmaking boom, only seven US$10B+ deals have been announced in Q1 2025 — the lowest in years. Tariff uncertainty is making corporate decision-making more cautious.
Big Auto Losers: Major carmakers from Germany, South Korea, and Japan — including Mercedes-Benz, Hyundai, and Toyota — are among the largest exporters to the US and will face the brunt of the new tariff.
Potential Trade Offsets with China: Trump hinted at tariff relief for China in exchange for cooperation on TikTok's US sale — showing he's still willing to trade terms for strategic gains.
Investor Insight:
This move has wide implications for consumer inflation, global auto supply chains, and stock valuations. Expect increased volatility in auto and trade-exposed sectors. Keep an eye on Friday’s inflation data and April 2 tariff announcement. Meanwhile, Tesla’s domestic moat could offer short-term shelter amid the tariff storm.
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