Tesla to Trump: Your Tariffs Could Turn Our Cars into Global Targets- wna24
New Delhi: Amid the growing trade war between the US and its global partners, Elon Musk’s Tesla has issued a stark warning that the electric vehicle giant could become a target of retaliation, thanks to President Donald Trump’s tariff threats.
In a pointed letter sent to US trade representative Jamieson Greer, Tesla cautioned that such trade actions could escalate costs and leave American-made cars less competitive in the global market.
The letter, submitted on March 11, was a diplomatic yet urgent plea for the reconsideration of certain tariffs, particularly those on critical materials like lithium and cobalt, which are already in short supply within the US.
Tesla said that US exporters, including its own operations, are particularly vulnerable when foreign nations retaliate with higher tariffs, noting that past US trade actions have resulted in immediate reactions that hurt American businesses.
“We are inherently exposed to disproportionate impacts when other countries respond to US trade actions,” Tesla wrote.
The letter comes amid ongoing tension between Trump and key trading allies like the EU and Canada.
It marks the latest move in a battle that has seen US tariffs disrupt international business, with Tesla warning that these actions might make it harder to compete on a global scale.
Tesla has long been supportive of fair trade practices but warned that the “bipolar tariff regime” was creating uncertainty.
While the company has made strides to localise its supply chain, such as building a battery manufacturing plant in Reno, Nevada, and a lithium processing facility in Corpus Christi, Texas, Tesla admitted that some components remain impossible or extremely difficult to source domestically.
Elon Musk’s close ties with President Trump have been well-documented, with Musk backing Trump’s re-election campaign. However, despite this political alliance, Tesla’s stock has faced a 40% drop this year, alongside rising customer dissatisfaction, especially in Europe. Meanwhile, protests in American showrooms targeting Musk’s political leanings have added to the pressure.