Despite Trade Barriers, Chinese EVs Will Pose Major Threat To American Automakers, Say Experts: 'Picture A Modern Day Godzilla'
Portfolio Pulse from Bibhu Pattnaik
Chinese EVs are gaining global popularity but face significant trade barriers in the U.S. due to a 25% tariff and exclusion from 'Buy America' credits. Despite this, China's automotive industry is growing, with BYD outproducing Tesla last year. U.S. lawmakers advocate for more tariffs, while U.S. automakers like Ford and GM are wary of potential Chinese retaliation. Chinese firms plan to assemble EVs in or near the U.S. to avoid tariffs, with Polestar starting production in South Carolina next year.
December 03, 2023 | 2:59 pm
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NEGATIVE IMPACT
Ford Motor faces potential competition from Chinese EVs despite current trade barriers. The company is cautious about the impact of retaliatory tariffs from China.
Ford Motor may experience increased competition if Chinese EVs manage to enter the U.S. market or if trade barriers are reduced. The company's caution regarding retaliatory tariffs suggests a complex and potentially negative impact on its business.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
General Motors acknowledges the complexity of potential retaliatory tariffs from China as it faces the prospect of Chinese EVs circumventing trade barriers.
General Motors could be negatively impacted by the entry of Chinese EVs into the U.S. market, either directly or through assembly in nearby regions. The potential for retaliatory tariffs adds to the uncertainty and potential risk for GM.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Tesla Inc., which was outproduced by Chinese EV maker BYD last year, may face increased competition as Chinese automakers plan to assemble EVs in the U.S.
Tesla Inc. is likely to face increased competition from Chinese EVs, especially with BYD's growing production capabilities and plans by Chinese firms to assemble vehicles in the U.S. to avoid tariffs. This could impact Tesla's market share and stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80