Stocks of automakers both domestically and internationally have been negatively impacted by President Trump's decision to implement a 25% tariff on foreign automobiles and specific auto components. However, Tesla is an exception to this trend as its stock prices have risen. While Tesla experienced a slight decrease in gains, it still closed higher compared to competitors like GM and Ford, which saw declines.

One of the reasons why Trump's auto policies concerning tariffs and electric vehicles (EVs) may not pose a threat to Tesla is due to the company's localized manufacturing. Tesla manufactures its vehicles primarily in the US, specifically at its facilities in Fremont, California, and Giga Austin in Texas. This sets Tesla apart as one of the few automakers, alongside Rivian and Lucid, that produce vehicles exclusively in the US for the US market. This localized production strategy insulates Tesla from the potential impact of tariffs imposed on foreign autos.

Despite being viewed as a relative winner in the current tariff situation, Tesla is not completely immune to the potential consequences. Concerns have been raised internally about potential retaliation from US export partners and the increased costs of internationally sourced parts if tariffs are enforced. Additionally, the future of the federal EV tax credit could be a cause for worry for Tesla, as the company heavily relied on this credit during the Obama administration and even benefited from its extension under the Biden administration.

In conclusion, while Tesla stands out as a potential beneficiary amid the tariff discussions, uncertainties around the impact of tariffs and the future of EV incentives still loom over the company.