Tesla, the electric vehicle maker led by Elon Musk, has expressed concerns over potential retaliation from countries against US trade tariffs. In an unsigned letter to the US trade representative, Tesla warned that US exporters could be harmed disproportionately if other countries respond with their own levies.
The letter was dated after a White House event where Trump announced his support for Tesla and promised to buy a car, reportedly in a red Tesla. Musk is a close ally of the president and has been instrumental in reducing federal government size.
Despite Musk’s involvement with the Trump administration, Tesla’s share price has dropped by 40% this year, primarily due to concerns over meeting production targets and decreased sales. The company is reorganizing its supply chains to rely less on foreign markets but notes that certain components may be difficult or impossible to source within the US.
China, Tesla’s second-largest market, has responded to US tariffs with retaliatory measures, including those on electric vehicles. The EU and Canada have also threatened sweeping retaliations for steel and aluminium imports into the US.
The tensions come as protests against Musk’s role in Trump’s administration have targeted Tesla showrooms in recent weeks, with some demonstrators being labelled domestic terrorists by the president.
Source: https://www.bbc.com/news/articles/c201z4lv5xxo