Elon Musk has staked Tesla's future on this bet. Cybercab —a compact, self-governing automobile designed to lead the car manufacturer’s push into the robotic taxi market and provide a route for expansion as more electric vehicle producers ramp up their efforts eat its lunch .
It was an already questionable move And now, in a dark twist of fate for Musk, things have become even more precarious due to the Trump administration he aided in bringing into the White House. Hundreds of millions in dollars in highly visible support.
As Reuters reports , Trump's steep tariffs on Chinese goods have forced Tesla to suspend its plans to import parts for the Cybercab and its electric tractor unit, the Semi, from China.
It remains uncertain how long the suspension will continue, just as it's unpredictable when Donald Trump’s fluctuating tariffs might stabilize. It might cause substantial disruption, considering that the production of these vehicles is already encountering considerable obstacles.
According to the report, Tesla was due to begin receiving components deliveries. In the coming months, we plan to initiate trial production for both the Cybercab and Semi models beginning in October. Our objective is to commence large-scale manufacturing by 2026.
Interestingly, Tesla had been gearing up for the tariffs over the last two years by increasing its procurement of components from North America, as reported. Reuters source. It was even ready to eat the extra costs of the tariffs on China when they were still at 34 percent.
However, those rates are now clearly behind us. Following the events of "Liberation Day," Trump increased the tariffs to 84 percent—and subsequently upped them to 125 percent. then an astounding 145 percent, and now to such a significant extent that the The exact number has started to blur somewhat. .
When it was first shown last October, Musk informed investors that the Cybertruck would contribute trillions of dollars to the business. The vehicle would have a price tag below $30,000 and start manufacturing in 2026. However, both these commitments are now under significant pressure due to the tariffs.
The circumstances are even more critical for the Semi, whose development has encountered numerous delays and remains years off track. Following an announcement of postponement, the car manufacturer stated it would start deliveries in 2021 Since then, it has only manufactured a limited quantity of these trucks for an even smaller market. smaller group of customers .
The suspension of part imports is the most recent consequence that Tesla is experiencing due to Trump's stringent economic policies targeting China, which represents the company’s second biggest market and home to the world’s largest electric vehicle sector. Last week, Tesla paused orders for two of its car models On its Chinese site as China imposed counter-tariffs on American products reached 84 percent. In light of these concerns, Tesla stock continued to dive .
Indications suggest that the harsh tariffs are causing a divide between Trump and Musk. On his platform X, Musk fiercely opposed the president's top trade advisor Peter Navarro, who created the tariff strategy, referred to as a "moron" and even worse. Musk additionally expressed his commitment to "free trade," and personally attempted to alter Trump's opinion behind the scenes.
So far, there are no indications that Trump is backing down.
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