The prices have already forced Tesla to increase the prices of its electric vehicles in Canada
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by Brad Anderson
March 14, 2025 at 09:08
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- No one at Tesla wants to be dismissed for sending the letter, so they would have left it unclear.
- Tesla says it is difficult to get certain parts and components in the United States.
- The automaker has revised its world supply chain in recent months.
While Elon Musk turned out to be a precious acolyte for President Donald Trump, even Tesla knows that the designated trade war will have a negative impact. The electric vehicle manufacturer recently sent a letter to the US trade representative Jamieson Greer, warning impacts that reprisal rates may have on production costs.
In the letter, dated March 11, Tesla urged Greer to “assess more the limitations of the interior supply chain”, to help us the manufacturers from commercial actions. Interestingly, the letter was not signed and according to an anonymous source with an acquaintance of the letter, it was because “no one in the company wants to be dismissed for having sent it”.
Read: Musk uses $ 56 billion in Tesla salary, because the dismissal of thousands simply do not pay enough
“As an American manufacturer and exporter, Tesla encourages the USTR to consider the impacts downstream of certain proposed actions taken to combat unfair commercial practices,” said the letter. “Even with an aggressive location of the supply chain, certain parts and components are difficult or impossible to find in the United States.”
Prices have not only an impact on Tesla locally in the United States. Many electric vehicles it builds in the United States are exported to Canada, and it has already been forced to increase prices in the White Far North in response to prices.
Tesla has added that prices will have an impact on the cost of manufacturing vehicles in the United States and will make them less competitive after being exported internationally. The letter has also urged Trump administration not to make materials like lithium and cobalt in the United States, especially since they are rare in the United States.
According to the Financial Times, Tesla has changed its global supply chain in recent months, trying to build and get as many materials and components of the United States as possible.
Only time will tell us if the pressure of societies like Tesla will encourage Trump to give in to its pro-valiant policies, but it seems unlikely, especially since it has spoken in terms as bright since its return to the oval office.
