Tesla Hit Mexican Wall

"As if Tesla ( NASDAQ TSLA) did not have enough problems with the US and EU, the cars it manufactures in China and exports to Mexico may soon face a 50% tariff. The problem is simple, according to Reuters, "All of Tesla's Model 3 and Model Y cars that were sold in Mexico since mid-2023 were manufactured in the company's Shanghai factory." While Mexico ranks No.12 in terms of total cars sold by country,"

"Tesla has roadblocks around the world. To some extent, based on Elon Musk's political activity and increased competition from BYD and legacy car companies, Tesla's sales have declined in the EU. In the US, Tesla once held 80% of the market share; that dropped to 47% in the second quarter of this year. And, in China, the world's largest EV market, there are dozens of local Tesla competitors. There are reasonable concerns that Tesla's 2025 global sales could be a sharp drop from 2024."

"The Mexico problem, added to those around most of the world, means Musk has to lean even more heavily on his pitch that Tesla is an AI, robotics, and autonomous vehicle company. To some extent, this has worked. Tesla, with a market cap of $1.28 trillion, is still the 10th most valuable company in the world. It may be worth more than every other major company on Earth combined."

Tesla faces potential 50% tariffs on China-made cars exported to Mexico after all Model 3 and Model Y vehicles sold there since mid-2023 were manufactured in Shanghai. Mexico ranks No.12 in total car sales, and Tesla seeks expansion despite growing global barriers. Sales have declined in the EU amid political controversy and rising competitors like BYD, while U.S. market share dropped from 80% to 47% in Q2. China hosts dozens of local competitors, prompting concerns that 2025 global sales could fall sharply from 2024. Elon Musk emphasizes AI, robotics, and autonomous driving as strategic pivots while the company retains a large market capitalization.

Read at 24/7 Wall St.