Zaid Admani

Moving forward, Canada will apply a much lower 6.1% tariff on Chinese EVs in exchange for China easing restrictions on Canadian canola exports.

Under this deal, Canada will allow up to 49,000 Chinese-built EVs per year, and within five years, that quota could rise to 70,000 cars.

Now, the reason that Tesla has an advantage here is because they already build a Canada-specific version of its Model Y at its plant in Shanghai.

In fact, in 2023, the year before the 100% tariff imposed by Canada, Tesla brought in more than 44,000 EVs to Canada from China.

Tesla also has 39 stores in Canada, while Chinese competitors including BYD and NIO have no sales presence in Canada right now.

So Tesla has an advantage, but this advantage won't last forever.

For one, Canada is fast-tracking the certification for Chinese EVs, but the bigger issue for Tesla is the price clause.

Half of the import quota is reserved for vehicles priced under $25,000, and every Tesla currently sold in Canada is priced above that level.

Meanwhile, some Chinese EVs from BYD and NIO fall well below the $25,000 mark.

So Tesla could see a short-term sales bump in Canada because of this new tariff.

Overall though, Tesla could see a short-term sales bump in Canada.

I think the bigger story here though is that Canada, which has historically been one of the US's closest allies, is moving closer to China.

And this is one of the outcomes that some economists had warned could happen because of President Trump's aggressive and sometimes erratic trade policies to Canada last year.

So we'll see what happens moving forward and if other U.S.

allies increase their economic ties to China.

Now, White House officials were quick to respond to this.

They warned that Canada will regret allowing Chinese EVs into their market, and they made it clear that these cars would not be allowed in the U.S.

Let's shift gears and talk about Netflix.

Netflix has officially sweetened its bid for Warner Brothers.

According to an SEC filing this morning, Netflix amended its previous deal to be all cash at $27.75 per share for Warner's studio and streaming business, which includes HBO Max.