CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Tesla is up 2% as EU imposes new tariffs on cars from China

17:13 4 October 2024

Tesla has seen a surge in its stock price despite facing new European tariffs on Chinese-made electric vehicles (EVs). While these tariffs are designed to hinder the competitiveness of Chinese EVs in the European market, Tesla has managed to secure a favorable tariff rate due to its significant investments in China.

The Impact of European Tariffs

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

The European Union's decision to impose tariffs on Chinese EVs is a direct response to concerns about unfair trade practices and government subsidies. These tariffs aim to protect European automakers and level the playing field for domestic EV manufacturers. However, the tariffs have had varying impacts on different brands. It is also important to stress that these tariffs are in addition to the standard 10% import duty on cars. Key points regarding the tariffs:

  • The tariffs range from 7.8% to 35.3% depending on factors such as cooperation with the anti-subsidy investigation and joint venture arrangements with European companies.
  • The tariffs are expected to lead to price increases for Chinese-made EVs in Europe, potentially making them less attractive to consumers.
  • Some Chinese brands, particularly those with higher tariffs, may face challenges in maintaining competitiveness and could see reduced market share.

Tesla's Advantage

Tesla, with its significant manufacturing operations in China, has benefited from a lower tariff rate of 7.8%. This favorable treatment is a result of negotiations and considerations related to the company's investments and contributions to the Chinese economy and also its investments in Europe, especially in Germany.

Tesla deliveries are rising

In addition to the tariff advantage, other factors have contributed to Tesla's recent stock gains:

  • Strong delivery numbers: Tesla's third-quarter delivery results, which met market expectations, boosted investor confidence. The EV maker delivered close to 463k units in Q3 which was higher than in Q2 and year ago. It was in line with market expectations but below than whisper numbers of 465k-470
 

Deliveries increased in Q3 in comparison to Q2 and year ago numbers. Source: Bloomberg Finance LP

  • Anticipation for Robotaxi Day: The upcoming event focused on Tesla's self-driving technology and robotaxi plans has generated excitement and potential for future growth.
  • Recall announcement: While the recall of Cybertruck vehicles was a minor setback, it did not significantly impact the stock price. It is also important to note that Tesla is taking orders for cheaper version of Non-Foundation Series Cybertruck.
 

Tesla financial report for Q3 is scheduled on October 23. Expectations are not so high so looking at deliveries number, there is a chance for positive surprise and the stock price may be considered cheap looking from short term perspective, comparing to S&P 500. Source: Bloomberg FInance LP

 

The price is up more than 2% today following a 3-day sell-off. The price remains in a wide consolidation between 160 and 280. If recent developments continue to support company performance, there is a possibility of breaking the recent high from July and reaching the highest level since September 2023. Source: xStation5.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 1 Million investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language