As the global automotive industry braces for the impact of Donald Trump’s proposed 25% tariffs on imported vehicles and parts, one company appears less vulnerable—Tesla (TSLA.O). While legacy automakers face potential financial strain, the Texas-based EV giant’s largely domestic production footprint shields it from the worst of the fallout.

Unlike rivals such as Ford (F.N), General Motors (GM.N), and Stellantis, which saw stock declines of up to 5.8%, Tesla’s shares bucked the trend, rising over 6% on Thursday. Analysts attribute this resilience to Tesla’s U.S.-based manufacturing and sourcing, reducing its exposure to international supply chain disruptions.

However, while Tesla may be better positioned domestically, its global reputation remains under scrutiny. The company’s stock has fallen more than 40% since December, amid growing backlash against CEO Elon Musk’s role in the controversial Department of Government Efficiency. Despite recent public support from administration officials, Musk acknowledged that tariffs will still raise the cost of imported components, particularly lithium-ion batteries from China and auto parts from South Korea, Japan, and Mexico.

Goldman Sachs estimates that vehicle prices in the U.S. could increase by $5,000 to $15,000 due to the tariffs, prompting automakers to pass on higher costs to consumers. This shift may work in Tesla’s favor, potentially closing the price gap between its electric vehicles and traditional gas-powered competitors.

“Tesla is relatively well-positioned due to its 100% U.S. production footprint and significant domestic sourcing,” noted TD Cowen analysts, emphasizing the Model Y’s competitive edge in a segment where nearly half of all vehicles could be affected by tariffs.

While uncertainties remain, Tesla’s ability to navigate these trade disruptions may provide a strategic advantage in an increasingly volatile auto market.