r/WallStreetbetsELITE 10d ago

MEME How much will Trump's 25% tariffs cost the U.S. automotive sector?

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6.0k Upvotes

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165

u/nanotasher 10d ago

Okay, so serious question.. Secretary of Commerce goes on Fox News and urges Americans to buy Tesla. Tariffs go into effect for auto imports two days later. Was he trying to pump TSLA? What's the logic here? Someone help me understand.

103

u/SmoothWD40 10d ago

Gotta give board time to dump. Retail IS the exit strategy.

36

u/Totesnotskynet 10d ago

Bag holders…all the way down. Then they have to sell hard assets cheap which are gobbled up by the oligarchs

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u/One-Earth9294 10d ago

You know how we used to have checks and balances?

We don't anymore.

That's the logic. It's buffet time for the tyrants.

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u/kickedbyhorse 10d ago

Was he trying to pump TSLA? What's the logic here? Someone help me understand.

Why do you think he's trying to pump TSLA? Just because he went on TV trying to pump TSLA? Tinfoil hat alert!!

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u/Remarkable-Skill-440 9d ago

Had nothing to do with the fact he runs Cantor Fitzgerald or the fact that CF is a huge investor in TSLA. Completely unrelated!

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u/Dubsland12 10d ago

More than 50% of Teslas are built overseas. That’s going to go well

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u/Low-Tax-8391 10d ago

Their parts are made oversees for the ones assembled in the US that will still add to costs as well to those built here

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u/Dubsland12 10d ago

There is clearly no plan other than to destroy the country

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u/One-Earth9294 10d ago

To destroy the dollar.

1

u/Militop 9d ago

And replace it with bitcoins

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u/Key_Preparation_4129 8d ago

Even worse, Trump shit coin.

5

u/derpycheetah 9d ago

The problem is destroying a country means something totally different for the ultra rich than it does for the average American.

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u/FuManBoobs 9d ago

You don't have to drain a swamp if there is no swamp. 4D Chess.

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u/Jdec529 10d ago

So the tariffs on American cars in the EU destroyed their country?? About any the VAT that is added to American cars in the EU??

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u/Low-Tax-8391 9d ago

The EU isn’t a country….

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u/Jdec529 9d ago

You know what I meant. I'll rephrase it for you. Did it destroy the Economic Union, which consist of 27 states that was founded in 1993?? Since you are so smart, did it?

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u/odourless_coitus 9d ago

No one buys American cars in EU besides Tesla and that is dying too

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u/Jdec529 9d ago

And why is that??

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u/odourless_coitus 8d ago

I guess our cities are made for horses and people and not cars. An American car won’t fit on our streets or parking spaces. Also gas is more expensive so a 350 cu.in. V8 ain’t that practical. Also the styling is not popular here. Ford sells cars here but it’s completely different models built for and in Europe.

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u/BritishAnimator 9d ago

Tesla parts won't be tariffed. Musk will find a way to offset that.

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u/itsnotthatseriousbud 9d ago

Countries who send the parts will just increase their costs making Tesla pay more, which in turn will make their vehicles more expensive.

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u/camilatricolor 8d ago

In any case Tesla is going to die..Nobody wants to buy cars from Nazi dealers specially when they are of very mediocre quality

1

u/Low-Tax-8391 7d ago

The copper for the wires, the aluminum, etc are all already being tariffed. Good luck with the auto tariffs. You’ll be lucky when he inevitably backs off after having a “terrific” or “beautiful” round of phone calls from the leaders around the world. But that’s only if he is a good mood that day and had his diaper changed before the phone calls begin, if not it’s going to be a bad time. That meeting with Zelenskyy, Stephen Miller forgot to change him so he was already grumpy that day.

2

u/slrarp 9d ago

Tariffs or no, Tesla is still a luxury brand. A $100,000 car is still going to be unaffordable for most people in the US, and most people aren't going to buy a truck for work that can't drive down a dirt road or even haul equipment taller than 20 inches.

1

u/Dubsland12 9d ago

Tesla Truck isn’t a truck. It’s a giant statement that your wang is tiny

1

u/omnibossk 9d ago

A model 3 is at least half of that. And a used much less as some don’t want to be associated with the brand anymore

1

u/Due_Respect9100 9d ago

Who would buy a used Tesla?

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u/Critical-General-659 10d ago

They aren't built there.  They import the batteries. 

1

u/Dubsland12 9d ago edited 9d ago

China is almost 1/2 the business. Yes the 1/2 built in China stay in Asia but you think the Chinese are going to let this stand and keep buying Teslas? China and the US are 90% of sales.

Those are both going down by huge amounts and you can count on the last 10% to reduce by 80% or better. I’m guessing overall sales will be 30% of what they were. Only 75 Million voted for Trump and they aren’t very interested in EVs and the majority sure can’t afford a Tesla truck even if they are that stupid

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u/itsnotthatseriousbud 9d ago

China is about 30%, and USA is about equal. Europe counts for the other 30%. With China and Europe sales declining rapidly. Unless Tesla some how makes all vehicles in the USA for the USA market, they will not be a company for much longer.

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u/Sea-Interaction-4552 9d ago

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u/Dubsland12 9d ago edited 9d ago

As I said above.

Not the 1/3 of production that is made in China, the second biggest market.

With Tariffs China will quit buying 70% of the Teslas they were buying.

They also have a ton of competitors in China.

In the US 750 million out of 250 million adults voted for Trump and I guess Musk. Guess how many of them like EVs.

It’s gonna be an amazing, beautiful thing …a magnificent dumpster fire. People are saying the greatest dumpster fire in history.

1

u/Sea-Interaction-4552 9d ago

Chinese made Teslas aren’t sold in the US

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u/Dubsland12 9d ago edited 9d ago

As I said in my reply he makes 1/3 to 1/2 of all vehicles in China

China is the 2nd biggest market

Tariffs will destroy that market for Tesla.

In the US a huge majority of Tesla owners and potential buyers are anti Trump. That will destroy the US market

Europe is the 3 rd largest market and they are already fully anti Musk. Not big fans of NAZI salutes and supporting all the Trump policies

70/80% drop in sales. MMW.

1

u/itsnotthatseriousbud 9d ago

And 30% sold in Europe and 30% sold In China. The Chinese sales have been on a decline for years due to domestic electric vehicle production, and sales in Europe has sharply decreased since trump’s second term start.

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u/LARufCTR 10d ago

Trump EO: Government backed auto loans for first time Tesla buyers requires no credit check, $0 down, 0% APR and 240 month term.

17

u/nanotasher 10d ago

Executive Order 15765: All Americans are required to purchase a TESSLER in the next 12 months or deported to Venezuela

/s

12

u/nyvz01 10d ago

It's a favor to Americans because teslers are all computer!

5

u/BitingBlush6969 10d ago

Tesseracts maybe the best cars ever made, some people are saying it.

4

u/Gold-Border30 10d ago

Believe or not, straight to jail

1

u/imonthetoiletpooping 10d ago

Or all j6ers will get a discount on a tessler

1

u/turbo_dude 10d ago

I think he meant KESSLER

https://www.imdb.com/title/tt0081885/?ref_=ext_shr_lnk

In the years after World War II, the tables have turned: ambitious, cruel Gestapo-officer Ludwig Kessler, the most implacable hunter of every opponent to the Third Reich, can no longer deny its rule is militarily annihilated by the Allies. He must now flee himself as he is a war criminal accused of the torture and execution of numerous victims. He manages to get away with a fortune and starts a new life as a businessman, still hoping for another rise of the master race to power, in which his part should be even more prominent, from a (neo-)fascist colony in Paraguay. Meanwhile, Albert Foiret and some of his former Lifeline colleagues play a part in the hunt for the former master-hunter.

1

u/Loud_Step2361 10d ago

Stop giving him ideas!

1

u/This_Possession8867 9d ago

Seriously we joke but anything is possible. Could we have predicted this?

1

u/Objective-One-3895 10d ago

Is this true?

1

u/Complex_Sherbet2 10d ago

... and you have your very own electric Hindenburg.

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u/Critical-General-659 10d ago

The batteries for Tesla top selling models come from Shanghai, China. But they are still technically "made in America". 

The infomercial didn't work. Trump's offshoring regardless. 

5

u/TedBob99 10d ago

Between Trump using the White House as a Tesla showroom and Secretary of Comnerce advising to pump stocks, it's the most blatant pump ever...

The dump is coming soon, as well as poor quarterly figures.

1

u/J_Adam12 10d ago

So what stops him from faking the quarterly figures? Seriously. Who or what stops him at this point? First they threw common decency out the window, and then the laws

2

u/TedBob99 10d ago

The CFO wouldn't do it, and auditors wouldn't sign on it. They don't want to go to jail. He may think/be above the law, but other people know they are not.

1

u/nanotasher 10d ago

The pump happened Monday at opening bell.

The dump happened Tuesday at opening bell.

I made about 10%.

5

u/TedBob99 10d ago

The dump is only starting. Tesla has a long way going down.

2

u/unfvckingbelievable 10d ago

Logic?? Really??

🤣

1

u/drjd2020 10d ago

Ditto. Trump is using his office to help Tesla...

1

u/Whatever-and-breathe 10d ago

Probably going to make TSLA exempt some how.

1

u/Friendly_Tip_4470 10d ago

It’s only about the pump. Dumb money in so that smart money can leave

1

u/Able-Cauliflower-712 10d ago

That is the exact strategy. Americans are fuked but they chosen him, sadly.

1

u/Donkey_Duke 10d ago

If everyone sells they get caught holding the bag, since they can’t offload all their stock without rocking the boat. 

1

u/fleeyevegans 9d ago

Insiders at TSLA have only been selling. Fox and trump's admin want retail to be musk's exit liquidity.

1

u/rideincircles 9d ago

Prop up Tesla when everyone else can't compete.

1

u/real-duncan 9d ago

The coup continues

1

u/Unfair_Holiday_3549 8d ago

Yes please pump to 400, so i can exit and make money.

1

u/joshPopeye 8d ago

Elon bought him the presidency he’s making sure he gets a return on his investment, trump has a debt to pay to him.

1

u/WhyAreYallFascists 8d ago

Yes. They’ve been insider trading these swings via options. I guarantee it.