Tesla Warns US of Tariff Risks Amid Trump Departure

Tesla, the electric vehicle company run by Elon Musk, expressed concern over retaliatory tariffs against US manufacturers in a letter to the US Trade Representative. The warning comes after President Donald Trump’s departure from office and as Tesla shares continue to slide. The company urged policymakers to consider the downstream impacts of trade actions and the limitations in the domestic supply chain for electric vehicles and lithium-ion batteries.

Tesla, which has benefited from the Trump administration’s focus on tariffs, is now cautioning against hasty actions that could harm its operations. The company’s European sales dropped 45% in January, according to industry data, and Tesla shares have lost value recently. Musk, who had a close relationship with Trump, is becoming increasingly polarizing.

The letter highlights the challenges of sourcing critical components such as lithium-ion batteries within the US. Tesla operates numerous facilities across the country, employing over 70,000 people, but notes that some items are impossible to source domestically. The Office of the US Trade Representative should investigate ways to avoid similar pitfalls in future actions, according to Tesla.

As the trade landscape evolves without Trump’s influence, Tesla’s warning signals a shift in the company’s approach to US policy. With Musk now facing increased scrutiny as a polarizing figure, it remains to be seen how this will impact Tesla’s operations and stock performance.

Source: https://edition.cnn.com/2025/03/13/business/elon-musk-tesla-retaliatory-tariffs/index.html