Tesla sounds the alarm over Donald Trump’s measures

Tesla warns the Trump administration about potential repercussions of certain measures on the cost of its electric vehicles.

In an unsigned letter addressed to Jamieson Greer, U.S. trade representative, and reported by the Financial Times, Tesla expresses concern that protectionist measures taken by the Trump administration could paradoxically complicate the domestic production of certain components, leading to higher prices.

Dated March 11, the letter highlights the difficulties Tesla faces in fully manufacturing in the United States due to supply chain constraints. Although the company supports fair trade principles, it urged the government to carefully review these limitations to avoid unjustly penalizing American manufacturers. Tesla stated: “Even with an aggressive localization of the supply chain, some components remain difficult, or even impossible, to produce in the United States.”

The “All American” is a myth in the automotive industry

Tesla also asked Greer to conduct an assessment of local production solutions to prevent tariffs from making certain essential parts too expensive. The automaker emphasizes that these trade measures have already provoked reactions from targeted countries, including increased tariffs on American exports, including electric vehicles.

Canada, a key market for Tesla, has imposed counter-tariffs in response to U.S. actions. This has led Tesla to raise prices for Canadian customers. Even American buyers have noticed small price increases on flagship models like the Model X, illustrating the broader impact of the administration’s trade policies.

Interestingly and certainly not coincidental, this letter was sent on the day President Trump publicly purchased a red Tesla Model S Plaid at an event in front of the White House with Elon Musk present. A way to prove that Tesla is not Elon Musk and to free itself from the dominant shadow of the entrepreneur turned politician. The visible camaraderie between Musk and Trump, including Musk’s participation in discussions on public spending, is upsetting some Tesla owners and dissuading potential buyers. For Tesla, business remains business.

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