Trump's EV, tariff plans bring more uncertainty to an auto industry already in flux
Published On Jan 18, 2025, 10:30 AM
The article discusses the American auto industry as it faces uncertainty due to potential changes under a Trump administration, specifically regarding electric vehicle (EV) policies and tariffs. Trump may roll back the EV tax credit and tough emissions standards, which could negatively impact major automakers like GM and Ford who rely on these incentives to boost sales and manage pricing. Moreover, tariff threats on cars made in Mexico and Canada could harm profits, with analysts suggesting that tariffs could reduce annual profits by up to 17% for automakers. While the industry is currently adjusting after a pandemic boom, these new policies could complicate recovery efforts or lead to longer-term technological setbacks.
Stock Forecasts
GM
Negative
The potential rollbacks on EV incentives and tariffs may negatively impact sales and profitability for traditional automakers who are heavily investing in electric vehicles to transition with the market. As such, they could see a decline in stock prices as uncertainty grows around policy support for EVs.
F
Negative
As Ford also relies on the EV tax credits and has made significant investments in electric vehicle development, the potential dismantling of these supports could harm their sales and stock performance in the near term.
STLA
Negative
Stellantis might face similar pressures related to tariffs hitting their operations due to significant production outside of the US; this may negatively affect their profit margins going forward under Trump's policies.
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