- Tesla apparently abandoned the idea of bringing important components into America from China.
- The parts are needed for Tesla's Cybertruck robotaxi and Semi-truck versions.
- Tesla agreed to take on a 34% tariff, however, the introduction of a new 145% rate necessitated stopping all shipments.
Tesla has significant stakes involved in its Cybercab Robotaxi faced a significant setback, with CEO Elon Musk’s frequent ally, President Trump, being held responsible. According to reports, the company must abandon its plan to transport crucial Cybertruck parts from China due to the hefty tariffs imposed on Chinese goods by Trump.
More: Tesla's Cybertruck Boasts 300-Mile Range Despite Compact Battery Size
The car manufacturer anticipated starting to ship components from China to the U.S. within the coming several months. This would be essential for initiating test production runs of both the Cybertruck and the Semitruck—of which only minimal amounts have been manufactured thus far. Their objective was to ramp up manufacturing to reach full-scale output for these two vehicle types by 2026.
Tariffs Cause Hitches in Progress
The declaration of a 34 percent tariff by Trump was not good news, but Reuters sources say Tesla was ready to handle the financial burden. However, once Trump’s retaliatory tariffs dispute intensified to the stage where duties on goods coming from China surged to 145 percent, Tesla decided to stop.
It remains uncertain for how long Tesla will continue to apply the brakes, as nobody—not even Donald Trump—can predict the length of time these significant tariffs will be imposed. However, the U.S. President disclosed earlier this week his contemplation about modifying the 25 percent tax on automotive components sourced from countries like Canada, Mexico, and others. He also recently declared exemptions for electronics such as iPhones manufactured in China.
Tesla’s US Sourcing Strategy
According to Reuters, Tesla has over the last few years expanded its sourcing of components from within U.S. boundaries due to concerns about potential future tariffs. It remains uncertain how swiftly Tesla could shift suppliers and procure parts for vehicles like the Cybertruck and Semi domestically—though we have reached out with this query, anticipating no response from Tesla.
Tesla unveiled its long-awaited Cybercab Last autumn, a pod resembling a Honda CRX with scissor doors and lacking a steering wheel was unveiled. The company is now focused on obtaining the necessary permissions to start testing and running autonomous vehicles in the U.S. and other countries.
0 Comments