Elon Musk’s electric vehicle company, Tesla, has expressed concerns that U.S. exporters, including itself, could face negative consequences if other nations retaliate against trade tariffs imposed by Donald Trump.
Musk, a known supporter of the former president, has been actively involved in efforts to cut down federal government spending.
However, in an official letter addressed to the U.S. trade representative, Tesla stated that while it “supports” fair trade, it fears that American exporters are “exposed to disproportionate impacts” if foreign governments respond with countermeasures.
The letter coincided with a White House event where Trump pledged to purchase a Tesla as a gesture of support for Musk.
Since the letter was unsigned, it remains unclear who within Tesla authored it or whether Musk was aware of its contents.
Tesla’s stock has declined by 40% since the beginning of the year. While some critics argue that Musk’s association with Trump is damaging the brand’s reputation, market experts suggest that the drop is largely driven by concerns over Tesla’s ability to meet production goals and a decline in sales over the past year.
The letter also mentioned that Tesla is actively restructuring its supply chain to increase reliance on domestic suppliers for its vehicles and battery components, reducing dependence on international sources.
“None the less,” the letter cautioned, “even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the US.”
Trump has implemented an additional 20% tariff on all Chinese imports, prompting China—Tesla’s second-largest market—to retaliate with tariffs of its own, including on automobiles.
“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries,” the letter reads.
Additionally, both the European Union and Canada have issued warnings about implementing countermeasures in response to U.S. tariffs on steel and aluminum, which recently went into effect.
In recent weeks, protests have erupted at Tesla showrooms, with demonstrators voicing opposition to Musk’s role in Trump’s administration. Musk currently heads the Department of Government Efficiency (Doge), a position focused on cost-cutting measures.
During a White House event earlier this week, Trump, seated in the driver’s seat of a red Tesla he claimed he would purchase, stated that protesters disrupting Tesla’s operations should be classified as domestic terrorists.
Trump condemned the demonstrations, saying they were “harming a great American company,” and warned that anyone resorting to violence against Tesla would “go through hell.”
