11:07 AM EDT, 10/03/2024 (MT Newswires) -- Tesla (TSLA) and other US automakers focused on electric vehicles are facing a double-edged sword on the recent Chinese import tariffs, Wedbush Securities said in a report Thursday.

"On one hand this protects US automakers from lower priced Chinese EVs hitting the market," Wedbush analysts, including Daniel Ives, said. "However, the battery and component technologies sourced from China make this a moving target on the battery front to navigate this ever changing tariff environment and raw materials landscape for Tesla in particular."

The analysts noted the discontinuation of Tesla's Model 3 compact sedan for orders and deliveries in the US, saying that the Model 3 Standard Range Rear-Wheel Drive uses lithium iron phosphate battery cells sourced from China that "clearly fall" under the Biden administration's tariffs on Chinese imports.

Wedbush maintained Tesla's outperform rating and $300 price target.

Tesla shares were down 2% in recent trading.

Price: 245.33, Change: -3.69, Percent Change: -1.48