Tesla Bull Says There Are 'No Winners' With Trump's Auto Tariffs, Calls It 'Pure Chaos' For Global Supply Chains

Leading analysts are not mincing their words for US President Donald Trump’s new 25% tariff on all imported cars and car parts.

While the markets have made their stance clear on this, with the S&P 500, Nasdaq, and the Dow witnessing consecutive weekly declines, there is reason to believe that the new global trade paradigm will be considerably worse than what most people anticipate.

What Happened: Wedbush Securities likens it to an ‘armageddon’ for the auto industry and its ancillaries, warning that there are ‘No Winners’ with such tariffs, which only serve to increase costs and complexities for the entire industry.

They further go on to add that the only outcome is ‘pure chaos’ as auto giants will have to scramble to reorganize their supply chains, which have been several decades in the making, and no matter what, consumers will have to pay $10,000 to $15,000 more when buying a new car.

It is estimated that Trump’s ‘untenable’ tariffs on the auto industry will lead to an additional burden worth over $100 billion, which will not spare anyone. Even Tesla Inc. TSLA will be hit hard since there are no automakers with completely domestic supply chains. Tesla CEO Elon Musk had earlier said that the tariff’s impact on Tesla is ‘significant.’

See More: Tesla Bull Pierre Ferragu Predicts $113 Combined Market Cap Of Elon Musk’s AI Startup xAI And X Will Look ‘Tiny’ In Few Years: ‘So Much Potential’

US Manufacturing Resurgence A Pipe Dream

While the US President remains undeterred in the face of market setbacks and continues to pursue his dream of a manufacturing resurgence in the US, most experts and analysts call this a pipe dream.

Wedbush states that bringing auto manufacturing back to the US could take several years to materialize, and during this period, consumers, automakers, parts manufacturing, and the hundreds of thousands of employees in the ancillary industries will feel the pain until then.

This entire tariff-based trade policy ignores the complexity of global value chains, especially in the automotive industry. Just because there are tariffs in place does not mean that complex parts and solutions will automatically be made in the US, especially when there are complicated IP laws to consider.

According to Benzinga Edge, Tesla shares score remarkably well on growth and momentum, at 68% and 90%, respectively. But the stock fares poorly in terms of value at 10%. What does this score mean for the future of this stock? Subscribe to Benzinga Stock Edge Rankings for more such insights.

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