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Forget margin or options. Here's how the pros trade TSLAPresident Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“I am pleased to announce that, based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United States. The Tariff will be increased to 25%. It is fully understood and agreed that, if they produce Cars and Trucks in U.S.A. Plants, there will be NO TARIFF. Many Automobile and Truck Plants are currently under construction, with over 100 Billion Dollars being invested, A RECORD in the History of Car and Truck Manufacturing. These Plants, staffed with American Workers, will be opening soon — There has never been anything like what is happening in America today! Thank you for your attention to this matter. President DONALD J. TRUMP”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Trump’s threat to raise U.S. tariffs on EU cars and trucks to 25% could initially boost sentiment for domestic automakers like Ford Motor Company and General Motors Company, as their U.S.-based production may gain a relative cost advantage versus European imports. However, higher tariffs risk retaliation from the EU, potentially hurting global sales and supply chains for these companies, as well as for Volkswagen (OTC), which could face pressure both from direct tariff costs and possible lost U.S. market share.
Tesla, Inc. might see a competitive edge in the U.S. market if European electric vehicle imports become more expensive, but broader trade tensions can weigh on overall auto demand and investor risk appetite. Sector-wide, the Industrial Select Sector SPDR Fund and the Consumer Discretionary Select Sector SPDR Fund could experience heightened volatility, as investors reassess earnings prospects for manufacturers and consumer-facing companies exposed to auto sales and global trade flows.
Here are some of the stocks that might be affected:
Ford Motor Company ((F)),
General Motors Company ((GM)),
Tesla, Inc. ((TSLA)),
Industrial Select Sector SPDR Fund ((XLI)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
Volkswagen (OTC) ((VWAGY)).