Tesla Warns of Tariff Impact on US Manufacturing Costs

Tesla has voiced concerns that ongoing trade disputes and tariffs could negatively impact its manufacturing costs in the United States. The company supports fair trade but is worried about potential retaliatory tariffs from other countries, which could increase the cost of producing vehicles domestically. Tesla has been actively reshaping its supply chain to source more materials and components within the U.S. However, the company notes that certain parts and essential minerals like lithium and cobalt, crucial for battery production, are difficult to obtain solely within the U.S. Increased tariffs on these materials could further drive up manufacturing costs. While Tesla manufactures the majority of its vehicles sold in North America in the US, it still relies on a global supply chain. This makes the company vulnerable to tariffs on imported components and raw materials. Tesla is urging the avoidance of tariffs on essential minerals to maintain competitive production costs.