Tesla tops trading volume with $452.37 billion as tariffs loom

On March 27, 2025, Tesla (TSLA) closed at $273.13, with a trading volume of $452.37 billion, making it the top-traded stock of the day. The stock rose by 0.39%.

Elon Musk, the CEO of Tesla, has acknowledged that the newly announced automotive tariffs will have a significant impact on the company. Despite this, Musk believes that Tesla's localized manufacturing strategy will mitigate some of the effects. Tesla's vehicles sold in the US are produced exclusively in California and Texas, which means they are not subject to the new tariffs on foreign autos.

Musk has also expressed concern about potential retaliation from US export partners and higher prices for internationally sourced parts. However, analysts like Itay Michaeli from TD Cowen view Tesla as a relative winner in the tariff wars due to its 100% US production footprint and substantial US sourcing.

Investors seem to disagree with Musk's assertion that the impact of tariffs on Tesla is significant, as the stock has shown resilience despite the new policies. The future of the federal EV tax credit, which has been crucial to Tesla's success, remains a concern for the company. The tax credit, which provides a $7,500 rebate to consumers who buy or lease pure EVs, was extended and enhanced in President Biden's Inflation Reduction Act signed in 2022.