What Elon Musk said about tariffs and their potential influence on Tesla

Elon Musk On Tuesday, he said he did not like high and unpredictable tariffs, but any decision on what is happening to them is “completely dependent on the US president.”

Speaking about your company Call earnings in the first quarterMusk, related to the tariff, spun in the economy, Musk said that Tesla was in a relatively good position, compared to other American automakers, as it has “localized supply chains” in North America, Europe and China.

Musk said Tesla is a “automobile company that has been least affected by the tariffs at least in most relations.”

Tesla reported anxiety Quarterly income and sales on Tuesday, including 20% ​​compared to the year in automotive income and 71% of pure income. The company also stated that it did not provide any recommendations for 2025, at least before its update in the second quarter.

While Musk is one of President Donald Trump’s closest advisers, tariffs are the only question where he is partially violated with the administration. Recently he called Peter Navaro, Trump’s Chief Trade Advisor, Debil and Dumber than a Brick Bag. “

However, Musk said on Tuesday: “If a country does something predatory with tariffs,” or “If the government provides extraordinary financial support for a particular industry, then you need to do something for that.”

Tesla’s stock price was killed as the president sailed his plan for widespread tariffs earlier this month and it happened after the stock plunged at 36% In the first quarter, their worst rates for any period since 2022.

Because Tesla produces cars that it sells in the US domestically, the company is not subject to 25% Trump tariff on imported cars. But Tesla counts on materials and materials from China, Mexico, Canada and other places for production equipment, Car glass, printed boards, batteries and other products.

Musk said he offered his advice on tariffs.

“He will listen to my advice. But of course, of course, he will make his decision,” Musk said. “I have been on the record many times, saying that I believe that lower tariffs is a good idea.”

He added that he is a supporter of “predictable tariff structures” as well as “free trade and lower tariffs”.

Musk said the Tesla energy business is facing “negative” effects from tariffs as it detects lithium -yellow phosphate batteries used in the cars of its company from China.

“We are in the process of commissioning of local LFP battery cell production in the US,” he said. But he said the company could “only serve the share of our total installed power” with its local equipment.

“We are also working on providing an additional supply chain from non-Chinese suppliers, but it will take time,” he said.

Music called Tesla the most “vertically integrated car company”, but said there were many more details and materials coming from other countries. Despite the fact that it is built in Texas, “we are not growing rubber trees and iron production,” he said.

See: Battery tariffs from China can become really expensive