In a letter to U.S. trade representative Jamieson Greer, Tesla communicated that it would face rising costs due to the Trump administration's tariff strategy, which could drive up the prices of its electric vehicles. Tesla highlighted the difficulty of sourcing components domestically because of supply chain limitations, stating that even with efforts to localize production, certain parts remain hard to obtain within the U.S. The company urged an evaluation of domestic supply chain constraints to avoid imposing burdens from trade actions that could escalate tariffs on essential components.
Tesla expressed concern to U.S. trade representative Jamieson Greer, highlighting that tariffs would increase costs and complicate sourcing parts domestically for electric vehicle manufacturing.
In its letter, Tesla stated that aggressive localization of its supply chain would still not mitigate difficulties in sourcing parts in the U.S., underscoring the need for understanding domestic supply chain limitations.
Tesla warned that the imposition of tariffs could lead to cost-prohibitive requirements for necessary components, thereby burdening U.S. manufacturers and hindering its operations in international markets.
The letter dated March 11 was notable, coinciding with President Trump's purchase of a Tesla Model S Plaid, suggesting a complex relationship between government policy and corporate interests.
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