Tesla Warns Trump Administration of Tariff Risks to Business

The electric carmaker cautions that retaliatory tariffs could raise production costs and hurt competitiveness abroad.

Tesla sent an unsigned letter to U.S. Trade Representative Jamieson Greer warning that President Trump's trade policies could harm its business by triggering retaliatory tariffs from other countries.
The company highlighted that certain essential components, such as lithium and cobalt, are difficult to source domestically, making localization of supply chains insufficient to avoid these impacts.
Tesla's letter expressed concern that higher production costs in the U.S. could make its electric vehicles less competitive in international markets.
The letter comes despite CEO Elon Musk's close relationship with Trump, underscoring the potential business risks posed by the administration's trade policies.
Separately, Tesla is reportedly planning a lower-cost version of its Model Y in China to compete with affordable local EV brands, though this remains unconfirmed by the company.