Detroit, MI
Wall Street analysts say Elon Musk is the clear auto tariff winner: 'Tesla wins, Detroit bleeds'
New trucks crowd a parking lot at the GM assembly plant in Oshawa, Ontario, Canada, on Sept. 24, 2019.
Chris Helgren | Reuters
Several analysts on Wall Street see a clear winner emerging from President Donald Trump’s new auto tariff policy: Tesla.
Trump announced on Wednesday that all cars not made in the U.S. would be slapped with a 25% tariff beginning next week. The news sent shares of major American car producers in diverging directions in Thursday’s trading as Wall Street analyzed who would be most and least hurt by the policy change.
So far, multiple analysts see Elon Musk’s electric vehicle giant as a relative beneficiary given its domestic production. The stock rose more than 5%.
Put simply: “Tesla wins, Detroit bleeds,” wrote Bernstein analyst Daniel Roeska in a Thursday note to clients.
Tesla: ‘Clear structural winner’
Roeska called Tesla the “clear structural winner” of the policy, adding that it has a localized market share and is “better insulated” from trade risk. On the other hand, he said Ford and General Motors could see declines of up to 30% in earnings before interest and taxes this year.
“For everyone else, this is a margin reset and real drag on near-term earnings power,” he said of companies besides Tesla.
UBS analyst Joseph Spak noted both Tesla and competitor Rivian could “fare better” with 100% of production in the U.S. Rivian shares also were nearly 5% higher Thursday.
Tesla, 1-day
But for others in the industry, Spak said there will “clearly be some pain” as tariffs take effect.
TD Cowen analyst Itay Michaeli said Tesla’s substantial domestic sourcing helps make the company a “relative winner.” This is especially true for Tesla’s Model Y, which competes in the midsize crossover segment, a category that will now see close to half of all vehicles hit with levies. Presumably, a portion of the tariffs is likely to be passed on to consumers, making these vehicles more pricey.
Despite Thursday’s gains, Tesla shares have tumbled around 30% this year. Some of the declines have been attributed to political backlash against Musk, who is a key aid to Trump and acts as the face of the president’s government efficiency initiative.
As Tesla shares declined, Trump said earlier this month that he would purchase a Tesla in a show of support for Musk.
But Trump said the billionaire entrepreneur did not advise on auto tariffs because of a potential conflict of interest. Musk posted on his social media platform X that his company was not immune to effects from the policy.
“Important to note that Tesla is NOT unscathed here,” Musk wrote. “The tariff impact on Tesla is still significant.”
Still, Wall Street expects Tesla stock to rebound ahead, with most analysts polled by LSEG having a buy rating and an average price target suggesting about 18% in upside.
A ‘worst case’ scenario?
TD Cowen’s Michaeli called Trump’s announcement “close to the worst case outcome” compared with recent expectations for the policy.
He expects a “significant” initial impact to the Detroit Big Three. Based on policy as it is currently understood, he said Ford should be the least exposed in the group, while Stellantis may be the most exposed.
UBS’ Spak said to expect automakers to raise prices as a result. For Ford and General Motors, he estimated the average price tag could rise between $4,000 and $5,000 if 100% of the cost increase is mitigated.
Analysts pointed out that not every legacy automaker would be hit equally. Deutsche Bank analyst Edison Yu, for instance, listed Ford alongside Tesla in the “most shielded” bucket.
There are also some points of disagreement on which firms would feel the most pressure. Despite Michaeli saying Stellantis would be most exposed, Bernstein’s Roeska said the company should show “relative resilience” compared with other Detroit Big Three carmakers.
Ford’s stock declined 3%, while GM shares shed nearly 8%. Stellantis stock fell more than 2%.
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Detroit, MI
Detroit ‘Sloppy Chops’ restaurateur\u00a0killed: What to know
How to anonymously submit a tip to Crime Stoppers of Michigan
Here are the three ways to submit a tip to Crime Stoppers of Michigan safely and anonymously: by phone, online, and through the P3 Tips mobile app.
Mourning continued and no suspects were in custody a week after the fatal shooting of Detroit restaurateur and nightlife figure Mikey “Mike B” Brown at the end of February.
Brown was the beloved figure behind the “Sloppy” brand of restaurants, and remembrances have been rolling in online since his death.
Here’s what to know:
Shooting outside cocktail bar
“Mike B” Brown, 51, and two others were shot about 4:30 a.m. Feb. 28 in the area of 15789 Schaefer, police previously said.
The two others were found in front of the location, and Brown was found across the street, police said.
Police have asked those with information on the shooting to come forward.
There were no suspects in custody and no further updates in the case as of Monday, March 9, according to a statement from the Detroit Police Department.
Updates on the conditions of the two other individuals shot were also not provided.
Who was Mikey ‘Mike B’ Brown?
Brown was a husband, a father of five and a restaurateur.
He opened Sloppy Chops Restaurant, a steakhouse, in 2020 on West McNichols off the Lodge Freeway and later opened a seafood restaurant called Sloppy Crab, which was renamed the Crab Sports Bar, on East Jefferson Avenue near the Renaissance Center. Brown previously had two clubs, as well.
His downtown dining spot served as an answer to questions on offerings for Black diners in the city’s renaissance. His other “Sloppy” location showcased successful reach beyond downtown and into the city’s neighborhoods. Brown was also a cultural figure in not only the world of dining, but in the nightlife, the Free Press reported.
When are funeral services for Mikey ‘Mike B’ Brown?
A family hour was set for 9 a.m. March 13 and a funeral was set for 10 a.m. March 13, both at Triumph Church –North Campus at 15600 J.L. Hudson Drive in Southfield.
What’s been the fallout since Mike ‘Mike B’ Brown’s death?
Outside of the community hurt, there’s also been calls for a crackdown on establishments that stay open into early morning hours in residential areas, ClickOnDetroit reports.
How to report tips on Mikey ‘Mike B’ Brown’s shooting
Those with information tied to the triple shooting can contact the Detroit Police Department’s homicide unit at 313-596-2260 or submit anonymous tips through Crime Stoppers at 1-800-Speak-Up or DetroitRewards.tv.
Detroit, MI
Detroit Lions need backup QB as Kyle Allen to sign with Bills
Former Detroit Lions QB Hendon Hooker reflects on his time in Detroit
Former Lions QB Hendon Hooker joins to discuss his time in Detroit and Amon-Ra St. Brown’s skill on the basketball court.
The Detroit Lions will need to find a new backup quarterback. Kyle Allen, the 30-year-old ninth-year veteran, will reportedly sign with the Buffalo Bills for two years and $4.1 millions, according to ESPN, reuniting him with his former coordinator Joe Brady.
Allen, who came to the Motor City a year ago after inking a one-year deal, appeared in just three games and attempted two passes this past season as starter Jared Goff logged 98.5% of the team’s offensive snaps at quarterback.
Allen’s greatest contribution came in the preseason, when he forced the organization to give up on its experiment with Hendon Hooker.
In the competition for the No. 2 job, Allen outperformed Hooker and made the former 2023 third-round pick expendable by bringing his stunted development into sharp relief. While Hooker struggled to move the offense when he was in command, Allen thrived in his four auditions, spearheading one productive drive after another for the Lions. He completed 79.5% of his attempts, throwing for 401 yards and five touchdowns with two interceptions. All the while, he exhibited a good understanding of the Lions’ timing-based passing game, giving management the confidence he could – if needed – relieve Goff in a pinch.
“I feel very comfortable with him,” Campbell said last August.
But as it turned out, the Lions were never forced to call upon Allen. Goff, who hasn’t missed a start since Week 17 of the 2021 season, remained reliably present.
The Lions hope Goff’s iron-man streak will continue.
But if it for some reason ends, Allen is no longer there to replace him.
Contact Rainer Sabin at rsabin@freepress.com. Follow him @RainerSabin on X.
Detroit, MI
Detroit water main break snarls travel on East Jefferson Monday morning
Vehicles travel through water collected near water main break in Detroit.
DETROIT (FOX 2) – A water main break in Detroit is causing headaches for drivers and sending water into the streets of one of the city’s east side neighborhoods.
The break involves a 42-inch pipeline at East Jefferson and Burns Drive.
The breakage happened on Sunday, leaving only one lane open for each direction of travel.
Local perspective:
A day after the breakage, water was still gathering on the road of Jefferson Avenue.
Video captured of the scene Monday morning showed vehicles driving through ponds of water. Construction equipment were on site along with traffic cones.
The backstory:
This isn’t the only major disruption to water services in the region.
This weekend, a catastrophic breakage at 14 Mile near Drake impacted several Oakland County communities and thousands of residents.
Novi and Walled Lake were among those hardest hit by the breakage, which included dramatic scenes of waves of water washing down the road, submerging vehicles.
The Source: FOX 2’s Charlie Langton and previous reporting were cited for this story.
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