Tesla
Tesla is in a better position than most car companies to deal with tariffs because it makes most of its US cars domestically. But it still sources materials from other nations and will face import taxes.
The bigger impact will be seen in the company’s energy business. The company said the impact will be “outsized” because it sources LFP battery cells from China.
The broader trade war could also hurt the company as China, the world’s largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
CEO Elon Musk, an adviser to President Donald Trump, on Tuesday reiterated that he believes “lower tariffs are generally a good idea for prosperity.” But he added that ultimately the president decides on what tariffs to impose.
