Trump Tariffs: The Impact on Tesla – Debunking the Myths

Despite the rosy outlook painted by some Tesla fans, the reality is that President Trump's tariffs on Mexico and Canada will negatively impact Tesla. Data reveals that Tesla sources over 20% of its parts from Mexico, with additional components coming from Canada. This means the recently delayed (again, for another month) tariffs will inevitably increase Tesla's production costs, affecting vehicle prices and profitability. Tesla's stock reaction to the tariff delay further underscores this impact. Elon Musk's close relationship with Trump, and his seeming inaction against the tariffs, adds a layer of complexity. The long-term effects may extend beyond mere cost increases, potentially damaging US business relationships with Canada and Mexico.