Dear Tesla Stock Fans, Mark Your Calendars for November 29
CEO Elon Musk had some good news to share on Oct. 21, when Tesla (TSLA) posted a strong third quarter on the back of customer demand that exceeded production. To keep manufacturing cars, however, Tesla needs a steady flow of parts and raw materials, while the electric vehicle (EV) maker has warned that some of these materials are unavailable or harder to procure in domestic markets.
Now, a looming trade decision related to Vietnam is putting that warning back in the spotlight. Let’s take a closer look.
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Tesla’s Q3 Demand Is Pushing Its Supply Chain
Tesla CFO Vaibhav Taneja said on the Q3 earnings call that the company delivered more than 480,000 vehicles for the second-straight quarter in Q3. Tesla also ended the period with its highest order backlog in four years.
Deliveries, Taneja said, have been held back mostly by production, as ramping up takes time to “to get every aspect dialed in, from supply chain to manufacturing to delivery logistics.” Notably, Musk expects Tesla to manufacture 5 million vehicles by 2030.
Vice President of Vehicle Engineering Lars Moravy explained the limit. Tesla’s factories ran at “record rates” in Q3, but they can only build as fast as the slowest process or component in production. In other words, one slow part can hold up the whole line. The same is also applicable for the Optimus robot. Musk described about 10,000 things that must go right for Optimus production, which includes a smooth global supply chain.
Tariffs are also showing up in Tesla’s financials. Its energy gross margin rose from 20.4% to 33.1%. This was credited to tariff refunds booked in the quarter, plus a warranty adjustment with a vendor. Taneja said the refund money is being reinvested to expand U.S. production.
Tesla’s Vietnam Tariff Warning and the Nov. 29 Deadline
Reuters recently reported that companies are split on whether the U.S. should set new tariffs on Vietnamese goods. Tesla and Samsung both reportedly oppose the idea.
Tesla urged the U.S. Trade Representative to “take into account the supply chain needs of American manufacturers” in July. Even after major investments in U.S. production, the EV maker said that some advanced components and precision manufacturing equipment cannot be sourced domestically. Basically, a company spending heavily on U.S. plants still needs some parts and tools from overseas.
Samsung made a similar case, per the Reuters report, while some footwear and apparel makers also oppose new tariffs, among others.
Meanwhile, according to Reuters, President Donald Trump’s administration has set Nov. 29 as the deadline to finish a probe into Vietnam’s alleged intellectual property (IP) violations. Washington has labeled Vietnam as a “priority foreign country,” with it being the first nation to be added to this category in 13 years.
Whether any new tariffs would be broad or aimed at certain sectors remains unclear. In July, a general 12.5% tariff on goods from the country took effect after a forced labor probe. Still, Vietnam’s exports to the U.S. in the first eight months of 2026 jumped 42% from the same period in 2025.
Not everyone is against the potential Vietnam tariffs. Representatives of U.S. steel, seafood, and wood firms have reportedly called for new tariffs, while software and media copyright holders want firmer commitments related to quelling piracy.
What the Tariff Risk Means for Tesla Stock Investors
Tesla’s plans depend on expanding manufacturing capabilities. On the Q3 earnings call, Taneja said that capital spending is projected to be around $20 billion in fiscal 2026, backed by more than $45 billion in cash and investments.
Tesla’s order backlog is now its highest in four years, and production is holding back deliveries. So, if new tariffs raise the cost of key parts, or slow their arrival, it would likely impact future customers.
Still, Nov. 29 is the date to watch. If the potential tariffs are broad, automakers like Tesla could face higher costs. If they target only certain sectors, the impact on TSLA stock may be negligible.
Overall, Tesla has a consensus “Moderate Buy” rating on Wall Street. Out of the 41 analysts covering Tesla stock, 16 recommend a “Strong Buy” rating, two recommend a “Moderate Buy” rating, 20 recommend a “Hold,” and three analysts recommend a “Strong Sell” rating. The average price target of $414.94 represents potential upside of 21% from current levels.
On the date of publication, Aditya Raghunath did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com