As auto stocks reacted to the latest tariff announcement out of Washington, D.C., on Thursday, General Motors took the brunt of the hit.
Shares of GM fell more than 7% in Thursday trading, far underperforming the likes of Ford and Stellantis, which shed more than 3% and roughly 1%, respectively. Tesla stock was essentially unchanged for the day.
The divergence stems from the amount of vehicles that GM imports, and its exposure to Mexico in particular.
“Tesla and Ford appear to be the most shielded given location of vehicle assembly facilities although Ford does face incremental exposure on imported engines,” Deutsche Bank analysts wrote in a note Thursday. “GM has the most exposure to Mexico.”
President Donald Trump on Wednesday announced his administration would impose 25% tariffs on “all cars that are not made in the United States” and some automobile parts. The executive order signed Wednesday allows for some leniency for components that are compliant with the United States-Mexico-Canada Agreement, but it was not immediately clear what relief that might offer the North American automotive industry.
