After announcing tariffs of up to 38 percent on Chinese-built electric vehicles (EVs) on July 4, the European Union backtracked in some cases, notably in the case of U.S. automaker Tesla (NASDAQ: TSLA).
After the EU indicated in July that it would impose tariffs of 20.8 percent on Tesla electric vehicles made in China, it decided to reduce the tariffs to 9 percent. The company had previously appealed, saying that it had received subsidies from China that did not justify such a high tariff on its vehicles.
This tariff is in addition to the 10% tariff already in place on imported cars, making each TSLA vehicle subject to a 19% tariff.
TSLA shares apparently reacted positively to the news, rising 0.84 percent in premarket trading after a 3.12 percent gain had pushed the price down to $222.86 in the last trading session.
In light of the recently revised EU tariffs, Finbold decided to use artificial intelligence (AI) to determine how this development will affect Tesla’s share price in the coming period.
AIs give their verdict on TSLA share price after tariffs are imposed
OpenAI’s ChatGPT-4o predicts a likely price range of $215-$225, which is unlikely to have a major impact on TSLA’s share price, and claims that most of the costs will be borne by customers in Europe.
Alphabet’s (NASDAQ: GOOGL) Gemini appears to agree with its rival, setting an identical price range of $215 to $225, citing the claim that reduced tariffs mitigate pronounced downside risk for TSLA shares.
Microsoft’s Copilot (NASDAQ: MSFT) is the most optimistic in the most likely scenario. In this case, TSLA’s share price is likely to move in a range of $240-$260, taking into account the tariff cut, which in turn will reduce production costs and increase the company’s competitiveness in the European vehicle market.
AIs (with the exception of Copilot) do not see much impact of the fare cuts on TSLA’s stock price because they view the fares as already set and their price is fully passed on to the customer.
However, it is important to note that lower tariffs will undoubtedly impact Tesla’s product price, which could increase the company’s attractiveness and overall demand in European Union countries.
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