- Summary:
- Despite waking up to news of new tariffs on auto imports into the United States, Robinhood, Winnebago and Tesla stock prices could stay up.
Table of Contents
Stock markets have been hit by another unpleasant news, this time in the form of a 25% tariff hike on automobile imports into the United States. However, there is good reason for Winnebago, Robinhood and Tesla stock prices to go against the grain.
Tesla
Tesla stock price has been on a recovery path in the last week and ha gained nearly 17% in the last five trading sessions. That has not only built a strong bullish sentiment on the stock, but also helped it break above the 10-period Simple Moving Average on the daily chart. In addition, it trades above the Volume Weighted Moving Average (VWMA) as of this writing.
The stock’s upside is primarily driven by its obtaining of initial approval to start testing its autonomous vehicles in California. However, US President Donald Trump’s announcement of 25% tariff on auto imports could complicate matters for the EV giant, according to CEO Elon Musk.
Trump’s tariff plan is meant to protect US-made vehicles from external competition, but could attract retaliatory counter tariffs. Many automakers are concerned that their production costs could spike significantly, diminishing the intended gains.
General Motors, Ford, Toyota, and Honda stock prices were all down by 2.5% or more in the first hour of trading on Thursday in reaction to the tariff news. Nonetheless, Tesla (NASDAQ: TSLA) will likely weather the storm and ride on the robotaxi licensing momentum in the near-term.
Tesla stock price prediction
Pivot: TSLA stock price pivots at $284
Resistance: Initial resistance likely at $293, beyond which the next barrier will be at $302.
Support: The stock price will likely find the first support at $272, below which the upside narrative will be invalid. A stronger downward momentum could push Tesla stock price lower to test $263.
Winnebago
Winnebago stock is another stock associated with an automaker that is likely to follow a contrarian trajectory despite the current pressure on auto stocks. The stock was up by at the opening of the markets as investors reacted to a better-than-expected earnings report.
Winnebago (NYSE: WGO) reported a net loss of $400,000, substantially lower than analysts’ forecast figure of $12.7 million. In addition, its revenue for the quarter was $620.2 million, a drop from the $703.6 million in the corresponding quarter last year, but higher than the forecast $617 million.
It has a favoured standing due to its focus on recreational vehicles, a niche market where it has a strong footing. This offers Winnebago stock price a softer landing in the face of an in impending auto tariff trade war.
Winnebago stock price prediction
Winnebago stock pivots at $32.32. The upside will prevail if the stock stays above that level. Conversely, breaking below it will shift the momentum to the downside.
Resistance: Primary resistance likely at $37.47. Second resistance could come at $39.00
Support: WGO price will likely find initial support at $34.70. The upside narrative will be invalid if it breaks below that level. An extended control by the sellers could see the second support come at $33.90.
Robinhood
Robinhood stock price is bumped up after the company announced its venture into banking and wealth management. The stock was up by 1% and traded at $45.17 at the time of writing.
The company announced on Wednesday that it is launching Robinhood Banking, which offers traditional checking and savings accounts with luxury benefits as well as Robinhood Strategies, which offers wealth management.
The wealth management service is available to its premium “gold” subscribers and attracts a 0.2% fee capped at $250. The news marks a continuation of its evolution from a youth-focused app criticised for “gamifying” investment” to a formidable institution targeting the broader financial services. For investors, that translates to a broader revenue base, which augurs well for Robinhood stock price.
Robinhood stock price prediction
Robinhood stock price pivots at $44.50. Action above that level signals bullishness. Otherwise, the sellers could take control
Resistance: First resistance at $46.10, beyond which the next barrier will likely be at $47.46.
Support: The first support will likely be at $43.70, below which the upside narrative will be invalid. Second support likely at $42.85
