July 18 - Tesla (TSLA, Financial) shares surged on Friday as investors assessed new trade restrictions targeting a critical electric vehicle battery input.
The stock rose 3%, extending gains for the week. The S&P 500 and Dow Jones Industrial Average futures were little changed.
The U.S. Commerce Department on Thursday imposed a 93.5% anti-dumping duty on specific graphite imports from China, following a determination that the material was being sold below market value. The penalty adds to existing tariffs, lifting the total levy on some graphite products to as much as 160%.
Graphite is a core component in EV batteries, with each car using an estimated 100 to 200 pounds. China remains the world's dominant supplier, contributing around 75% of global output in 2024, according to the U.S. Geological Survey.
Higher import costs could push up battery production expenses, but analysts suggest the overall effect on EV pricing will be limited.
The new tariffs come alongside other policy changes impacting the EV sector, including the loss of the $7,500 federal tax credit for some buyers.
