Auto tariffs: TSLA, RIVN, LCID produce their vehicles in U.S., F better positioned than GM

Tesla (NASDAQ:TSLA), Rivian (NASDAQ:RIVN) and Lucid (NASDAQ:LCID) could see minimal effect from President Donald Trump's new round of auto tariffs as the three electric vehicle makers produce all of their cars sold in the U.S. domestically.

According to Bank of America, apart from these three firms, all other car manufacturers sold at least some of their vehicles in the U.S. that have been produced elsewhere.

Trump on Wednesday announced a 25% tariff that will be imposed on all vehicles not made in the U.S., effective on April 2. The tariffs will initially start at 2.5% and gradually increase to 25%.

Looking at U.S. legacy carmakers, "Ford (NYSE:F) is relatively less affected and may even benefit as it only imports a few models, which account for a modest 20% of its total volumes. GM (NYSE:GM) appears relatively exposed to the tariffs as it imports 49% of its vehicles," BofA Securities analysts led by John Murphy said in a research note on Thursday.   

See the table BofA shared below:

As per the chart, the top five automakers with the most import exposure to the U.S. include, in descending order of exposure: Jaguar and Land Rover parent Tata Motors, Geely (OTCPK:GELYF)(OTCPK:GELYY), Mazda (OTCPK:MZDAY)(OTCPK:MZDAF), Volkswagen (OTCPK:VWAGY)(OTCPK:VLKAF), and Hyundai (OTCPK:HYMTF).     

Murphy and the other analysts also believe that vehicle prices could increase as much as $10K if the carmakers pass on the tariffs in full to consumers in impacted vehicles. 

Auto stocks saw mixed reactions on Thursday. GM (NYSE:GM) and Ford (NYSE:F) were -7% and -3.7%, respectively, while U.S.-listed shares of French-Italian firm Stellantis (STLA) were -1.2%.

On the other hand, shares of Tesla (NASDAQ:TSLA) were +1.7%. Additionally, used car retailers Hertz (HTZ) and Avis Budget (CAR) were +23.5% and +21.1%, respectively, on expectations that used car prices could rise in response to the tariffs.

Here are some exchange-traded funds of interest tied to the automotive industry: (NASDAQ:CARZ), (BATS:FDRV), (CARU), (NYSEARCA:EVAV), and (CARD).