Trump’s auto tariffs are a gift to Tesla

President Trump is slapping 25% tariffs on all cars imported to the United States, including from our immediate North American neighbors. He’s also placed a 25% tariff on certain parts used to build cars. It’s a decision that will likely supercharge the cost of new and used cars, but it’s also a gift to Tesla, the company run by his biggest financial supporter in the previous election, Elon Musk. The new tariff regime comes at an auspicious time for Tesla. The company is dealing with the fallout of Musk’s promotion of far-right ideology and his involvement with the unpopular Department of Government Efficiency, which has sparked protests around the world. Tesla has recently relied on promotions and price cuts to boost sales, and yet it still sold fewer EVs in 2024 than it did in 2023 and is off to a rough start in 2025. New tariffs could shift that calculus, at least in the U.S. Tesla builds all of its cars destined for the North American market in the U.S. at factories in Fremont, C ... Read full article.