Tesla, the electric car manufacturer led by Elon Musk, has expressed concerns that retaliatory measures by other countries against Donald Trump’s trade tariffs could negatively affect it and other U.S. exporters.
Elon Musk, known for his close relationship with the U.S. President, is at the forefront of efforts to downsize the federal government.
In a letter sent to the U.S. trade representative, without a signature, Tesla acknowledged its support for fair trade but highlighted the risk of significant adverse effects on U.S. exporters if other nations respond to the tariffs.
The letter was issued on the same day President Trump held a White House event, during which he announced his intention to purchase a Tesla, signaling support for Musk.
The authorship of the letter is unknown, and it remains uncertain whether Musk was informed of its contents.
Since the beginning of the year, Tesla’s stock value has plummeted by 40%.
Musk serves as CEO, and although some suggest his association with the Trump administration may be damaging the brand, analysts attribute the decline more to concerns about meeting production goals and a decrease in sales over the last year.
Tesla also mentioned in the letter that it is adjusting its supply chains to utilize more local suppliers for its vehicles and batteries, thereby reducing dependency on foreign markets.
“Nonetheless,” it warned, “even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the US.”
The U.S. President recently implemented a 20% tariff on all imports from China, leading to retaliatory tariffs from Beijing, including on automobiles. China ranks as Tesla’s second-largest market following the U.S.
“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries,” the letter reads.
Both the European Union and Canada have threatened to enact broad retaliatory measures in response to U.S. tariffs on steel and aluminum imports, which took effect earlier this week.
Recently, demonstrators have targeted Tesla showrooms in protest of Musk’s involvement in cost-cutting measures within Trump’s administration, where he leads the Department of Government Efficiency.
At a recent event at the White House, Trump referred to the protesters against Tesla as potential domestic terrorists and praised the company while seated in a new red Tesla he plans to purchase.
Trump condemned the demonstrators, stating they were attacking a prominent American enterprise, and warned that anyone resorting to violence against Tesla would face severe consequences.
