0944 ET - Deutsche Bank says in a note that on a net-basis, it estimates Ford and GM could face a $4-$7 billion headwind on annualized EBIT from the tariffs. "While the Trump administration appears flexible on broader 'reciprocal' tariffs, the auto tariffs appear stickier and our assumption is they won't go away, representing a cornerstone in America's new industrial policy that demands onshoring," analyst Edison Yu says. Yu believes Rivian may have the cleanest set-up given its relatively small exposure to the tariffs and prospects for a strong R2 product cycle--subject to execution risk, he says. "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," Yu says. Tesla is up 0.5% in early trading and Rivian gains 1.2%. (patrick.sheridan@wsj.com)
(END) Dow Jones Newswires
April 14, 2025 09:45 ET (13:45 GMT)
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