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Elon Musk, CEO of Tesla
Elon Musk stated that the auto tariffs imposed by US President Donald Trump have a “significant” impact on Tesla.
Responding to a post on X, the world’s richest man wrote: “Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”
After Trump announced a 25% tariff on all cars not manufactured in the US, he said that Musk, his advisor and Tesla’s CEO, had not shared his opinion on the matter due to a potential conflict of interest.
When asked whether the new tariffs would benefit Musk’s car business, Trump said they could be either neutral or positive, citing Tesla’s assembly plants in Texas and California. He added that any entity with factories in America will benefit from the tariffs.
However, Tesla recently sent a letter to the US Trade Representative, stating that even with efforts to localize its supply chain, some auto parts and components are difficult or impossible to source within the US. The company urged policymakers to consider the implications of certain measures aimed at addressing unfair trade practices.
Tesla, like many other automakers, typically sources headlights, glass, and other vehicle components from foreign suppliers, particularly in Mexico, Canada, and China.
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