After announcing tariffs on China-built electric vehicles (EVs) that would amount to up to 38% on July 4, the European Union is backtracking in some cases, most notably in the case of U.S.-based carmaker Tesla (NASDAQ: TSLA).
Namely, after indicating that China-made Tesla EVs would face tariffs of 20.8% in July, the EU decided to trim the tariffs to 9% after receiving an appeal from the company that stated it had received subsidies from China that do not warrant such a high tariff on its vehicles.
This tariff will be in addition to the 10% tariffs already on imported cars, for 19% for each TSLA vehicle.
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TSLA stock seemingly reacted positively to the news, adding 0.84% in the pre-market, after 3.12% gains settled the price at $222.86 in the latest trading session.
With the newly revised EU tariffs, Finbold decided to use artificial intelligence (AI) to determine how this development will affect Tesla’s stock price in the upcoming period.
AIs deliver their verdict on TSLA stock price post-tariffs
ChatGPT-4o from OpenAI predicts a likely price range of $215 to $225, which doesn’t showcase much impact on the TSLA stock price, claiming that most of the costs will be absorbed by the customers in Europe.
Alphabet’s (NASDAQ: GOOGL) Gemini seems to agree with its rival, as it sets an identical price range of $215 to $225 based on the claims that the reduced tariffs mitigate a pronounced downside risk for TSLA shares.
Microsoft’s (NASDAQ: MSFT) Copilot is most bullish on the most likely scenario, which puts the TSLA stock price in a $240 to $260 range, which accounts for the tariff reduction, which will, in return, lower the production costs, and increase its competitiveness on the European vehicle market.
AIs (barring Copilot) don’t see much impact of lowered tariffs on TSLA stock price, as they view the tariffs as already priced, with their price falling entirely on the customer.
However, it is essential to note that lower tariffs will undoubtedly affect Tesla’s product price, which could increase its appeal and broader demand in the countries that form the European Union.
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