Trump Tariffs: Tesla Zooms While Ford and GM Reverse

Automotive stocks experienced dramatic shifts Thursday following the latest round of Trump tariffs on imported vehicles, continuing a months-long pattern of volatility that has divided the sector and reshaped transportation ETF returns.

Tesla Inc. (TSLA) shares climbed 2.3% after the White House revealed that all vehicles not manufactured in the United States would face steep 25% tariffs starting in early April.

The ongoing tariff saga has created a stark performance gap between ETFs with Tesla exposure and those heavily weighted toward traditional automakers, showing how changing trade policies are now driving stock prices across the auto industry.

General Motors Co. (GM) took a heavy hit, with shares dropping 6.7% as the market reacted to the company's vulnerability to cross-border manufacturing disruptions.

Trump Tariffs Reshape Auto ETF Landscape

The First Trust Nasdaq Transportation ETF (FTXR) has struggled amid the trade tensions, falling 5.1% over the past month and 12.8% over the past three months, according to etf.com data.

Despite having Tesla as its fourth-largest holding at 7.8% of assets, FTXR's performance has been weighed down by its larger positions in Ford Motor Co. (F) and General Motors, which represent 9.1% and 8.7% of the fund, respectively.

Ford shares dropped 2.4% on Thursday's news, extending a pattern of volatility that has plagued automakers with mixed domestic and international production footprints.

The iShares U.S. Manufacturing ETF (MADE) has weathered the tariff uncertainty somewhat better, declining 2.1% over the past month and 5% over the past three months.

MADE's more diverse manufacturing sector exposure, including top holdings Amphenol Corp. (APH) (4.2%), General Motors (4.1%) and Honeywell International Inc. (HON) (4%), has provided some insulation from the worst of the auto-specific tariff impacts.

Tesla Funds Show Volatility

The specialized Battleshares TSLA vs F ETF (ELON), which employs a long Tesla and short Ford strategy, has experienced extreme volatility during the tariff discussions. Despite initially surging more than 16% on Thursday's news, the relatively new fund remains down 26.9% over the past month as tariff policies have fluctuated.

Similarly, the Simplify Volt TSLA Revolution ETF (TESL) rose 4.4% on Thursday but has fallen 31.7% over the past three months despite posting a 65.9% gain over the past year.

Source: etf.com Compare ETFs tool. Data as of 03/26/25. 

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Tesla's domestic manufacturing strategy offers protection from tariff impacts that have hit competitors with global supply chains, coming just weeks after Tesla CEO Elon Musk enjoyed high-profile support when President Donald Trump promoted the brand during an event at the White House.

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