While many US-based companies are suffering amid US President Donald Trump’s tariff war, Tesla (TSLA) stock may have some benefits to reap. The US stock market has struggled, facing increased volatility and concern throughout the year so far. There is no shortage of companies that have seen their share price fall, with talk of a trade war abounding. However, several analysts project Tesla (TSLA) stock to rise.
Indeed, while many companies, especially in automotive, have suffered amid the tariff talks, Tesla builds all the cars it sells in the United States in California and Texas. Tesla has built largely self-sufficient supply chains in the United States and China, a rarity in a world of interconnected trade. As a result, the tariffs imposed by the Trump administration on Chinese goods, and the continuing threat to put them on Mexican and Canadian products, might help Tesla by hurting its competitors more.
The EV manufacturer is one of the hardest hit stocks of the year, with its price on a major downfall. Although there remains a lot of potential in the robotics and autonomous driving sectors, that has yet to pay off in the near term. Fortunately, there are rumours that the tariffs wouldn’t affect Tesla’s sales at all, especially as the United States eyes a deal with India, Tesla’s newest market. Therefore, the Elon Musk-led EV maker might get a slight boost as the tariffs affect its competition.
Trump Administration’s Recent Moves Benefit Elon Musk and Tesla
Furthermore, the Trump administration is trying to eliminate financial support for the construction of fast-charging stations for electric vehicles. This move could halt companies seeking to compete with Tesla’s extensive network, another boost for the EV maker. Trump is also attempting to cut or eliminate loans and subsidies that competitors like Ford Motor and Rivian are using to finance electric vehicle and battery factories. The moves are almost pouring into Elon Musk’s favor, although the Tesla co-founder has reportedly said nothing about trade or EV sales since joining Trump’s D.O.G.E. team.
TD Cowen projects Tesla (TSLA) to surge 45% despite its 2025 slide so far. The firm upgraded its price target for Tesla to $388, implying a 47% upside, according to a CNBC report. Although there is growing concern, analyst Itay Micchale shared his optimism with the stock. “While we are valuation-/sentiment-minded when recommending stocks, we agree with the underlying notion that Tesla cannot be compared to other automaker stocks, not because it isn’t an ‘auto company’ but because its arguably best positioned to capture sizable opportunities that exist across auto-mobility and adjacent markets,” he said.
There is no shortage of analysts who echo that sentiment. Despite falling 27% in the last month, it has a $393 median target. That would represent a 50% increase. However, of the 57 analysts surveyed by CNN, 23% have a sell rating on the stock. Compared, just 47% have issued a buy rating.