Tesla: Trump’s tariffs could hurt us
This week Tesla sent an unsigned letter to US trade representative Jamieson Greer, saying the electric vehicle company could be “exposed to disproportionate impacts” from retaliation to President Donald Trump’s tariffs. It would increase the cost of producing vehicles — something of an anathema to investors’ hope for an affordable Tesla — and make the company less competitive overseas, it said. Tesla added that “even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the US.”
In other words, Trump’s policies could be bad for Tesla, which is struggling with shrinking sales and the lowest public impression ever.
This isn’t the first time Tesla has mentioned the harm of tariffs. In the company’s last earnings call, CFO Vaibhav Taneja said:
“Over the years, we’ve tried to localize our supply chain in every market, but we are still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability.”
What’s notable is that Tesla sent this letter despite CEO Elon Musk’s close relationship with Trump, whose policies it’s protesting.
In other words, Trump’s policies could be bad for Tesla, which is struggling with shrinking sales and the lowest public impression ever.
This isn’t the first time Tesla has mentioned the harm of tariffs. In the company’s last earnings call, CFO Vaibhav Taneja said:
“Over the years, we’ve tried to localize our supply chain in every market, but we are still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability.”
What’s notable is that Tesla sent this letter despite CEO Elon Musk’s close relationship with Trump, whose policies it’s protesting.
