President Elek (US President Donald Trump and Elon Musk observe the launch of the sixth Starship SpaceX rocket test in Brownsville, Texas, November 19, 2024.
Brandon Bell By Reuters
President Donald Trump He conducted a campaign based on the promise of tariff's impact on goods from many best trading partners. Elon Musk's The company of electric vehicles may feel pain.
During the call to Tesla's earnings on Wednesday, the financial director of Vaibhav Tanaua said that the company's profitability may hit if the new administration has implemented the tariffs.
“For years we have tried to locate our supply chain on every market, but we are still relying on parts from around the world for all our companies,” Tanya said. He said that “imposing tariffs” would “affect our activities and profitability.”
President Trump, who returned to the White House last week, weighs tariffs to China, Mexico and Canada to protect business interests in the USA.
Tariffs were a popular tool in the first Trump administration and were used on goods, including solar panels, steel and aluminum. He remained the main point of the conversation on the campaign trail. The president advertised a 60% tariff to China, and in the weekend he threatened Colombia with a 25% tariff for goods coming to the USA
Musk was the greatest supporter of Trump, pouring $ 277 million on his campaign and supported other Republican candidates. Musk now runs the Department of Government Efficiency (Doge), and many analysts speculated that his strict relations with the president can benefit his companies.
Tesla's shares increased by 55% from the victory of Trump's elections at the beginning of November. Actions increased by another 4% in extended trade on Wednesday Weaker than expected earnings and revenues for a quarter.
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