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The Future Automobile > Electric Cars > Tesla’s Cybertruck and Semi production hit by Trump’s tariffs, according to report.
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Tesla’s Cybertruck and Semi production hit by Trump’s tariffs, according to report.

4 weeks ago 5 Min Read
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A newly released report suggests that President Trump’s tariffs have severely impacted Tesla’s plans to supply components for its forthcoming Cybertruck and Tesla Semi production in China, thereby disrupting the company’s overall strategy.

The global supply chain is reeling from the trade war sparked by President Trump’s unpredictable tariff policy, which has disrupted the carefully crafted plans of logistics experts worldwide.

Tesla is not any exception.

The iconic American automotive manufacturer relies heavily on international supplies to fulfill numerous production requirements domestically, sourcing essential components from China, Mexico, Canada, and Europe.

Elon Musk’s company, Tesla, is set to unveil two new electric vehicles: the Cybertruck and the Tesla Semi.

Tesla aims to commence production of vehicles at its Gigafactory Texas facility and a newly established manufacturing plant in Nevada by the end of this year, with plans to scale up to volume production by 2026.

Tesla reportedly puts brakes on sourcing certain components for its Cybertruck and Semi from Chinese suppliers.

The shipment of components from China to the US for Tesla’s Cybertruck and Semi electric vehicles has been put on hold due to the imposition of tariffs by President Donald Trump as part of the ongoing trade dispute, according to an insider familiar with the matter?

When President Trump initially hiked tariffs on Chinese goods to 34%, Tesla was poised to implement its supply chain strategy. However, following the latest tariff increases, the automaker has put its sourcing plans on hold indefinitely.

When Trump introduced a 34% tariff on Chinese goods, Tesla was prepared to absorb the increased costs. However, when the tariff exceeded that level, it couldn’t absorb the added expense, leading to suspended delivery plans, said an unnamed source due to personal reasons.

Last week, President Trump increased tariffs on China to a record-high 145%, sparking confusion when he announced certain exemptions on Friday, only to later deny any exceptions had been made.

See also  Toyota to pump $1.3 billion into Kentucky plant for electric vehicle production.

As a response to the United States’ tariffs imposed on China, Beijing countered with its own set of tariffs on US goods, prompting Tesla to suspend new orders for Model S and Model X vehicles in the country.

Electrek’s Take

While the report’s findings may seem convincing, its reliance on a solitary source warrants skepticism; nonetheless, the strategy demonstrated shows promise.

The tariff turmoil sparked by Trump’s policies has had far-reaching implications for virtually every major manufacturer worldwide, with Tesla being no exception.

As a result of Tesla’s vertically integrated business model, some shareholders argue that the tariffs may have a constructive impact on the company, or at least not have as negative an effect as they would on other automakers.

While Tesla’s vertical integration is indeed impressive within the automotive industry, it’s crucial to acknowledge this achievement in absolute terms, rather than just comparative ones. Despite its success, Tesla relies heavily on the supply chain of various countries, with significant imports from both Mexico and China.

Mexico’s reliance on U.S.-based suppliers could pose significant challenges to Tesla, considering approximately 25% of the components used in its vehicles come from this country alone.

Tariffs imposed on automotive components imported from Canada and Mexico remain temporarily suspended under the USMCA agreement, effective for all aspects within the United States; however, Trump has signalled that this pause is only temporary.

While the tariffs on China mainly impact Tesla’s energy business, which relies heavily on affordable Chinese battery cells, the electric vehicle manufacturer also imports certain Chinese components, making those 145% tariffs a significant concern.

See also  Volkswagen kicks off ID.7 electric car production, unveiling its new flagship EV model.

As a leader in the electric vehicle industry, Tesla must continually explore innovative solutions.

The main challenges arise not only from President Trump’s imposition of overly burdensome tariffs on various countries, but also from his tendency to constantly change his stance and make exceptions, rendering it difficult for businesses to develop effective plans.

Tesla might need to put on hold its plans with Chinese suppliers solely to gauge whether Trump’s tariffs will be lifted once again. If Musk can leverage their past political donations – totaling $250 million – to persuade the President for an exception, allowing them to source from alternative countries or even manufacture these components domestically, as Trump claims his tariffs aim to achieve.

Despite reservations, there’s still uncertainty about whether this is the last version.

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Sales figures of electric vehicles from various manufacturers: Tesla 3,070 units, Nio 3,930 units, Xpeng 6,870 units, and BYD 67,980 units.

TAGGED: Electric, Electric Car, Electric Vehicles, Tesla
TheFuture Automobile April 18, 2025 April 16, 2025
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