Summary
- Piper Sandler analysts are confident in Tesla’s position despite escalating tariffs due to its high level as a stock and reputation in the domestic market
- Tesla holds an advantage of having some of the most American-made vehicles in the country, making it a defensive stock in the automotive sector
- Tesla’s Model Y, Model S, and Model X are among the top ten vehicles with the most U.S.-based manufacturing, according to Cars.com
- Tesla assembles five vehicles in the U.S., all of which rank among the most American-made cars
- While Tesla may be impacted by potential tariffs, it is better positioned than most companies due to its domestic focus and manufacturing practices
Article
Analysts at Piper Sandler believe that Tesla is well-positioned as a company and a stock amidst escalating tariff tensions between the United States, Mexico, and Canada. They are confident in Tesla’s position as a high-level stock holding due to its reputation as a vehicle manufacturer in the domestic market. Tesla has an advantage of having some of the most American-made vehicles in the country, which makes it one of the most defensive stocks in the automotive sector.
Tesla’s defensive play comes from its focus on building vehicles and sourcing parts from manufacturers and companies based in the United States. According to annual studies from Cars.com, Tesla holds the title of having several of the most American-made cars. In the most recent study released in June 2024, the Model Y, Model S, and Model X were among the top ten vehicles with the most U.S.-based manufacturing. Tesla captured three spots in the American-Made Index, making it the only U.S. manufacturer in the list.
In the previous year, Tesla swept the top four spots in the study, further solidifying its position as a domestic manufacturer. Piper Sandler analysts highlighted this point in a new note, emphasizing Tesla’s strength amidst increasing tension between the U.S. and Canada. They pointed out that out of the five vehicles Tesla assembles in the U.S., all of them rank among the most American-made cars. While there is potential for tougher times ahead due to tariffs, Tesla is expected to be in a better position than most companies because of its domestic position.
Despite the potential impacts of tariffs, there is a possibility that Tesla will not be completely immune to the consequences. Piper Sandler analysts believe that while Tesla may be impacted by tariffs, it will be better insulated than other companies. They also mentioned the possibility of President Trump making changes to the tariff situation, such as delaying implementation to save face. Overall, Tesla’s focus on American-made vehicles and domestic sourcing of parts puts it in a strong position amidst the escalating tariff situation between the U.S., Mexico, and Canada.
For Tesla owners looking for accessories, the Teslarati Marketplace offers a variety of products for their vehicles. For questions or comments, readers can contact Joey at joey@teslarati.com or reach him on Twitter @KlenderJoey. News tips can be emailed to tips@teslarati.com for further information.
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