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:
Trump’s 25% import tariff on cars and light trucks, expected to take effect next week, could push US car prices even higher, especially affecting low-cost models built overseas by brands like GM, Ford, Kia, and Hyundai.
Americans already face rising vehicle costs, and the latest tariffs risk further squeezing consumers and disrupting automotive supply chains, particularly at the entry-level market segment.
Mexico, Japan, and South Korea, the largest sources of US car imports, will be among the hardest hit.
The EV market could see selective benefit, with at least one electric carmaker poised to gain from the shake-up.
Market Reaction: Shares of major automakers, including Toyota, Mercedes-Benz, and GM, fell as investors weighed the impact of worsening global trade tensions.
Despite calling these tariffs “permanent,” Trump has recently backtracked on some trade threats — offering a glimmer of hope that the policy may shift again.
Why It Matters:
With Detroit’s focus on high-margin SUVs and trucks, the affordable car market is already limited. These new tariffs could price out more working-class Americans and deepen the divide between vehicle affordability and availability. The broader market also faces added pressure from global supply risks, potentially feeding into inflationary trends.
As Trump continues to shape trade policy heading into a volatile election year, investors and consumers alike should brace for further policy uncertainty across sectors reliant on global manufacturing.
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