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Exclusive: Trump's tariffs on Chinese parts for Cybercab, Semi disrupt Tesla's US production plans, source says
Reuters -
16/04
Elon Musk has been touting the models as major innovations.
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SHANGHAI, April 16 (Reuters) - Tesla (TSLA.O), opens new tab's plans to ship components from China for Cybercab and Semi electric trucks in the United States were suspended after President Donald Trump raised tariffs on Chinese goods amid a trade war, said a person with direct knowledge.
The move could disrupt Tesla's plan to start mass production of the much-anticipated models, which its CEO Elon Musk has been touting to investors as major innovations providing growth momentum of the U.S. automaker.
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Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended, said the person, who declined to be named as the matter is private.
Trump raised additional tariffs to 84% on April 9 and has since increased that to 125%, bringing the total tariffs on Chinese goods exported to the U.S. to 145%.
The company was scheduled to start receiving component shipments in upcoming months with the goal of starting trial production of the two models in October and mass production in 2026, the person said, with Cybercab to be produced in Texas and Semi in Nevada.... [Short citation of 8% of the original article]
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