Tesla has kicked off 2025 with a 71 percent drop in profit and its first recorded annual sales decline. The company’s stock price has plummeted, partly due to recalls, quality issues, and CEO Elon Musk’s controversial actions. President Donald Trump’s tariffs on Mexico and Canada have further exacerbated the situation, sending global trade into chaos.
The US Trade Representative office received a panicked letter from Tesla executives, warning of “disproportionate impacts” on their bottom line due to retaliatory tariffs. The company claims that sourcing components in the US is difficult, despite efforts to localize its supply chain. Trump’s tariffs and Musk’s actions have created a volatile economic environment for automakers like Tesla.
Tesla’s biggest concern is the threat of retaliatory tariffs from countries like China, which could lead to an even more hostile trade environment worldwide. The company also faces opposition from Trump’s desire to cut EV tax incentives, a major factor in its survival. With Musk’s unpredictable behavior and Trump’s economic policies, it seems Tesla’s struggles are far from over.
Source: https://futurism.com/tesla-trump-tariffs