Would Trump's extreme tariff plan help or hurt Musk?

Published On Sep 10, 2024, 8:22 AM

A potential return of Trump to the presidency could lead to significantly higher tariffs on Chinese goods, including a proposal to raise tariffs to 60% on auto imports. While this might inflate Tesla's competitive edge by reducing the threat from Chinese car companies, it could also strain Tesla's profit margins due to increased raw material costs and tariffs on Mexican-made vehicles. Tariff implementation is often complex and unpredictable, and retaliatory actions from other countries could create additional challenges for companies like Tesla. Overall, the situation remains uncertain, with various factors impacting outcomes for both Musk and Tesla.