TL;DR

Tesla’s touted ‘win’ from auto tariffs is likely a short-sighted illusion. Like Enron, hidden risks outweigh surface gains, and the long-term costs will ripple far beyond the auto industry.

Story

Trump’s auto tariffs: a case study in unintended consequences—and how easily headlines can mislead.

Bloomberg paints Tesla as a winner, shielded by its US factories. Sounds great, right? Think again.

This ignores the global nature of supply chains. Even if Tesla assembles cars in the US, many parts are imported. Tariffs raise their costs, squeezing Tesla’s margins. It’s like praising a baker whose flour now costs double.

Plus, tariffs spark retaliation. Other countries slap tariffs on US goods, hurting American exports—and Tesla’s overseas sales. This isn’t a win; it’s a trade war.

Remember 2008? The domino effect of bad loans? Tariffs can trigger similar chain reactions, impacting far more than car prices. Think job losses, economic slowdown—pain far beyond Tesla’s factory walls.

The human impact? Everyday consumers face higher car prices, regardless of brand. It’s a hidden tax, hitting wallets already strained by inflation. Like the housing bubble, this artificial price hike benefits few, hurts many, and creates instability.

‣ Tariffs: Taxes on imported goods, often used to “protect” domestic industries. In reality, they often hurt everyone. ‣ Trade war: When countries retaliate against each other with tariffs, disrupting global trade.

This situation mirrors the Enron scandal—superficial gains masking deep flaws. Remember: today’s “winners” can quickly become tomorrow’s cautionary tales.

Advice

Don’t be fooled by headlines. Dig deeper, question everything, and remember: no one wins in a trade war—especially not consumers.

Source

https://www.reddit.com/r/stocks/comments/1jkxq24/elon_musk_is_one_of_the_few_winners_from_trump/