Part 7/9:
A significant announcement that surfaced over the weekend involved a new trade deal between the US and China. According to Dan Ives of Wedbush Securities, this development is a "big deal" for Tesla stock. The agreement entails reduced tariffs on both sides, aiming to mitigate trade tensions and streamline the supply chain for automotive companies like Tesla, which have substantial manufacturing bases in China.
Ives noted that while the trade deal is beneficial, there are still tariffs on lithium-ion batteries and other components that will impact production costs. This situation presents complications for Tesla, particularly as they ramp up production of electric vehicles meant for both domestic consumption and export.