The "Fast Money" traders debated Thursday what is the best play in the auto space, amid tweets from Donald Trump threatening to impose an import tariff to prevent jobs moving to Mexico and other low-cost countries.
Earlier on Thursday, Trump rebuked Toyota Motor on Twitter after the Japanese automaker said it had no plans to curb production in Mexico. Toyota shares ticked lower after the tweet, hitting a session low of $120.32. The stock ended the session slightly above that level at $120.44.
The president-elect has previously threatened General Motors with a border tax, something he argues will encourage companies to keep production in the United States, creating more jobs for Americans. Opponents argue that an import tariff could lead to skyrocketing costs for the American consumer.
Trader Tim Seymour said the relatively tempered move in Toyota Motor was "rational" for the market.
If investors are looking for something in to auto sector, trader Pete Najarian said to look at Goodyear Tire. He said the company benefits from consumer trends favoring vehicles with larger tires.
Trader Dan Nathan said that one potential headwind for California-based Tesla Motors is the pressure to meet demand for its low-cost Model 3. He said he's not sure if the company can produce the car, meet its delivery targets and keep the $35,000 price tag.