Investing.com -- Since the election of President Trump, things for Tesla (NASDAQ:TSLA) have gone from ‘great’ to ‘so-so’ to downright ‘nasty’. The stock is off 50% from its post-Trump highs amid outrage over Elon Musk’s role with DOGE, slowing sales, and protests at Tesla dealerships. Now, the electric vehicle maker is warning that reciprocal tariffs could harm it.
“U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions,” Tesla said in a letter to U.S. Trade Representative Ambassador Jamieson Greer dated March 11, 2025. “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.”
Tesla said previous U.S. special tariff measures raised production costs for Tesla’s U.S.-manufactured vehicles and increased the cost of exporting these vehicles, making U.S. manufacturers less competitive globally. Tesla urged the U.S. Trade Representative to explore strategies to prevent these challenges in future policies.
In addition, Tesla emphasized that future trade policy should consider domestic supply chain limitations.
“While certain past initiatives have encouraged the growth of industries in the United States, certain supply chains remain nascent,” Tesla said, pointing to EVs and lithium-ion batteries. “…even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States.”
Lastly, Tesla said that as the United States Trade Representative assesses trade actions against unfair practices, it should consider phased implementation to help U.S. companies adapt, secure supply chains, and ensure compliance.