Tesla issues stark warning to Trump admin, says tariffs could devastate company as stock price nosedives

Tesla raised a big red flag to the Trump administration, it said that the president's continuous trade war with Canada and Mexico would cause serious damage to the company, according to Daily Mail report.

Tesla’s Growing Concerns Over Tariffs

In an unsigned letter to US trade representative Jamieson Greer, Tesla complained that new tariffs on metals would increase American auto producers' production costs, Daily Mail reported.

The letter, posted to the public comment forum for Greer by one of Tesla's in-house attorneys, is a reflection of a mounting concern among the electric car manufacturer that American trade policies will inadvertently harm domestic businesses, as per the report.


Though Tesla commonly publishes unsigned public comments, there are speculations about whether Tesla CEO Elon Musk had anything to do with it given his close relationship with US president Donald Trump, according to Daily Mail.

Tesla's letter mentioned that, "U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions," reported Daily Mail. The company also cited an instance of "past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries," as quoted by Daily Mail.

Tesla’s Supply Chain Challenges

The auto maker's concern is even with aggressive localization of the supply chain, "certain parts and components are difficult or impossible to source within the United States," quoted Daily Mail.

Tesla's Call for a Phased Approach

Tesla also mentioned that "companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken," reported Daily Mail.

FAQs

Who did Tesla send the letter to?
Tesla sent an unsigned letter to US Trade Representative Jamieson Greer.

Has Elon Musk publicly commented on this letter?
There’s no direct confirmation from Musk regarding the letter, but his close relationship with Trump makes many speculate he may have had an influence.