Tesla CEO Elon Musk is not immune to potential harm from tariffs imposed by US President Donald Trump, despite their close relationship. In a recent earnings call, CFO Vaibhav Taneja warned that the company’s reliance on foreign parts and suppliers could be affected by Trump’s tariff policies.
Tesla makes most of its vehicles in the US, but it still imports critical components like batteries from China. The company relies on Chinese companies BYD and CATL for its battery supplies. If Trump imposes tariffs on China, as he has pledged to do, it could harm Tesla’s business.
However, Musk remains optimistic about his company’s future despite the potential risks. He believes that Tesla can still become the most valuable company in the world by far.
The US President’s willingness to impose tariffs is evident in his previous actions, such as threatening 25% tariffs on Colombia over its refusal to allow military planes transporting undocumented immigrants to land. Despite this, Musk remains confident in Tesla’s ability to thrive under different circumstances.
Source: https://fortune.com/2025/01/31/tesla-cfo-tariffs-elon-musk-donald-trump-china