Trump's auto tariffs will hit many companies, but Elon Musk's Tesla less so

As the global auto world reeled from the potential fallout of Donald Trump's new auto tariffs, one name stood out as less affected than others - electric-vehicle maker Tesla .

The Texas-based company's shares were the rare automotive stock to trade in the green in U.S. action, as analysts said Tesla's supply chain and financial performance may not be affected by the wide-ranging levies that will affect global shipments of both cars and car parts to the United States, mainly due to the company's largely domestic production.

Still, that relief in the United States, where Musk has become one of President Trump's primary advisers, tasked with swiftly cutting federal spending, may not improve the brand's reputation worldwide.

Tesla shares have plunged more than 40% since peaking in mid-December as a protest movement against the EV company has erupted in the U.S. and around the world as the Musk-led Department of Government Efficiency has drawn heavy criticism for going after federal workers. The stock was up more than 6% on Thursday.

The 25% tariffs are expected to disrupt the global automotive industry, raise the cost of vehicles in the United States, and pinch automakers' earnings. Shares of Ford , General Motors  and Chrysler-parent Stellantis were down between 1.2% and 5.8%.

While Tesla does import some parts from around the world, the company largely produces its vehicles in the United States.

Trump said the duties announced on Wednesday could be net neutral or even good for Tesla, adding that his close ally Musk did not advise him regarding auto tariffs.

Vandalism at Tesla dealerships

Several administration officials have defended Tesla in public comments in recent days, ranging from urging people to buy its stock to opening investigations into vandalism at Tesla dealerships.

Still, Musk late on Wednesday said, "To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial."

Tesla imports lithium-ion batteries from China's Contemporary Amperex Technology Ltd  and other automotive parts from countries such as South Korea, Japan and Mexico, according to import filing data through the end of February provided to Reuters by ImportYeti.

Car prices could rise by $5,000 to $15,000 if a 25% tariff on imported cars is maintained, according to Goldman Sachs.

Automakers are likely to pass on the impact of tariffs to customers by raising prices, and that could close the price gap between Tesla's electric vehicle and competing gas-powered cars, analysts said.

"Tesla is a relative beneficiary given 100% U.S. production footprint, substantial U.S. sourcing and with Model Y competing in a midsize crossover segment where close to ~50% of vehicles could be subject to tariffs," TD Cowen analysts said in a note.