"They Need A Little Bit Of Time": Auto Stocks Pop On Trump Tariff Comments; But Deutsche Still Cautious

President Trump's statement offering potential aid to automakers impacted by new tariffs caused auto stock prices to rise. Companies like GM, Ford, and Stellantis experienced significant gains, while others saw smaller increases. Trump acknowledged the difficulty automakers face adapting to the tariffs, requiring time to adjust production. Automakers are employing various strategies including price adjustments and increased domestic production. A Deutsche Bank report forecasts a significant negative impact on automakers' earnings due to the tariffs. Ford and GM face the largest projected losses, while Tesla and Rivian are expected to be less affected. The report anticipates cost burdens shared among manufacturers, dealers, and consumers. Deutsche Bank downgraded GM's stock rating due to uncertainty surrounding US industrial and tariff policies. Despite the short-term challenges, the analysts maintain a positive long-term outlook for Tesla and Rivian. The report concludes that the full impact of the tariffs remains uncertain and will likely affect future guidance.