Investing.com-- Elon Musk said on Wednesday that Tesla Inc (NASDAQ:TSLA) would be significantly impacted by U.S. President Donald Trump’s 25% tariffs on all foreign-made automobiles.
“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant,” Musk said on X, responding to a post outlining where automobiles sold in the U.S. are manufactured.
"To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivia," Musk said in a separate post on X.
Tesla domestically manufactures all of its cars sold in the U.S., but does import certain parts, electrical components, and batteries from China.
Tesla’s shares slid nearly 6% on Wednesday following Trump’s tariff announcement, which likely heralds more headwinds for the struggling electric vehicle maker. Import duties could also complicate Tesla’s attempts to update its fleet of aging EVs, as well as its forays into autonomous driving and building robotaxis.
Data earlier this week showed Tesla’s European sales slumped over 40% for a second straight month in February, as it grapples with sluggish demand and heightened competition from several other automakers.
Tesla is also facing a consumer boycott in Europe and the U.S. over CEO Musk, due to his alleged ties to the far-right and his actions within the Trump administration’s Department of Government Efficiency.