Tesla (TSLA) Set to Benefit from Canada's EV Tariff Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Tariff Reduction: Canada is slashing EV tariffs from 100% to 6.1%, allowing 49,000 Chinese EVs annually, with a potential increase to 70,000 in five years, significantly lowering Tesla's cost structure and boosting sales potential in the Canadian market.
- Market Access Opportunity: With 39 stores in Canada, Tesla is well-positioned to leverage its existing network and the resumption of Model Y exports, enabling rapid market penetration, especially as demand for affordable EVs rises.
- Competitive Landscape Shift: While Tesla's models exceed the C$35,000 threshold for low-cost vehicles, this policy opens doors for brands like BYD, potentially impacting Tesla's market share in the growing EV segment.
- Production and Export Adjustments: Tesla's Shanghai plant is ready to produce Canada-specific Model Ys, and with the new tariff policy, it can resume exports, further solidifying its position in the North American market.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 438.570
Low
25.28
Averages
401.93
High
600.00
Current: 438.570
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
