{"id":1530445,"date":"2025-04-15T11:45:00","date_gmt":"2025-04-15T15:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1530445"},"modified":"2025-04-15T11:45:00","modified_gmt":"2025-04-15T15:45:00","slug":"they-need-a-little-bit-of-time-auto-stocks-pop-on-trump-tariff-comments-but-deutsche-still-cautious","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/they-need-a-little-bit-of-time-auto-stocks-pop-on-trump-tariff-comments-but-deutsche-still-cautious\/1530445\/","title":{"rendered":"“They Need A Little Bit Of Time”: Auto Stocks Pop On Trump Tariff Comments; But Deutsche Still Cautious"},"content":{"rendered":"

“They Need A Little Bit Of Time”: Auto Stocks Pop On Trump Tariff Comments; But Deutsche Still Cautious<\/span><\/p>\n

\n

Auto stocks popped Monday after President Trump said he wants to \u201chelp some of the car companies\u201d affected by the new 25% tariffs, acknowledging they \u201cneed a little bit of time\u201d to shift production to the U.S.\u00a0<\/p>\n

Automakers like GM surged higher on the news.\u00a0Ford, GM, and Stellantis jumped 3\u20136%, Rivian rose 4.9%, and Tesla held flat. Japanese and EV makers like Toyota, Honda, and Lucid saw gains of 1.5\u20132%.<\/p>\n

<\/a><\/p>\n

\u201cI\u2019m looking for something to help some of the car companies, where they\u2019re switching to parts that were made in Canada, Mexico and other places… But they need a little bit of time,\u201d Trump said during a meeting with El Salvador\u2019s president, according to CNBC<\/a>.<\/p>\n

A senior industry executive called Trump\u2019s remarks \u201csome recognition that this is getting tough for the industry.\u201d Despite recent tariff relief for tech firms like Apple, the auto levies remain.<\/p>\n

Carmakers are adapting in different ways. Ford and Stellantis launched employee pricing deals, Jaguar Land Rover halted U.S. shipments, and Hyundai pledged no price hikes for two months.<\/p>\n

GM is boosting U.S. production, reversing downtime at its Tennessee plant. \u201cThe previously announced downtime for the week of May 12th is being rescinded,\u201d plant management told workers. A GM spokesperson confirmed the move.<\/p>\n

Meanwhile Deutsche Bank released a note on Monday stating that as Q1 2025 earnings approach, automakers still face significant uncertainty from new tariffs. They expect strong early-year demand as consumers buy ahead of price hikes, followed by a slowdown in the second half as tariffs bite\u2014pushing 2025 U.S. auto sales to 15.4 million, down from 16.0 million in 2024.<\/p>\n

Ford and GM could see gross costs rise by over $10 billion, while Tesla and Rivian face smaller impacts due to their supply chains, the note said. These estimates assume a 25% tariff on imported vehicles and parts starting May 3, with exemptions for USMCA-compliant content.<\/p>\n

<\/a><\/p>\n

Deutsche said it believes automakers will share the cost burden with dealers and consumers and use various cost-offsetting strategies. Still, Ford and GM may see a $4\u20137 billion EBIT hit annually.<\/p>\n

“In such a context, we think Rivian may have the cleanest set-up given its relatively small exposure to the tariffs and prospects for a strong R2 product cycle (naturally subject to execution risk though),” analysts wrote.<\/p>\n

“We continue to view Tesla favorably longer term as an embodied AI secular winner but acknowledge it faces many cross currents for the next quarter or two.<\/p>\n

For Ford and GM, we believe both will deliver solid 1Q results compared to expectations but will withdraw full-year guidance as they implement tariff mitigation strategies. As such, we reluctantly downgrade GM to Hold from Buy given structural uncertainty around US industrial\/tariff policy. While the stock already trades at a low multiple, we worry it may be an impaired asset for several years.”<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 04\/15\/2025 – 07:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/they-need-little-bit-time-auto-stocks-pop-trump-tariff-comments-deutsche-still-cautious<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“They Need A Little Bit Of Time”: Auto Stocks Pop On Trump Tariff Comments; But Deutsche Still Cautious Auto stocks popped Monday after President Trump…<\/p>\n","protected":false},"author":0,"featured_media":1530446,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1530445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1530445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1530445"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1530445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1530446"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1530445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1530445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1530445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}