Elon Musk’s Tesla reportedly has stopped importing auto parts from China needed for future cybercabs and semi-electric trucks due to the trade war with Beijing.
The EV Pioneer had planned to import components from China to support the production of two new vehicles, but once the tariffs exceeded 34%, the plan became unacceptable. Reuters reportedcite sources with direct knowledge.
Last week, the Trump administration imposed a 145% total tariff on Chinese imports and urged Beijing to retaliate with a 125% tax on US goods.
The president has said tariffs are needed to readjust trade between the two countries.
It is unclear how long the import halt will last.
Masks are called self-driving cybercabs (also known as Robotaxi). This is a key component of the company’s future growth.
The company had planned to start early production of cybercabs and cicadas this October before increasing mass production by 2026.
The CyberCab is scheduled to be produced in Texas as Tesla’s Gigafactory, and the cicadas will be built at a factory in Nevada.
Tesla shares sank nearly 2% on Wednesday.
Company representatives did not immediately return requests for comment.
Tesla was considered more insulated than other American car brands. Because they build all the vehicles that are US-based plants that are sold in the US.
However, the company operates major businesses in China and is country dependent on the specific components used in the vehicle.
Supply chain difficulties make it even more difficult to achieve mask’s ambitious goals for fully autonomous vehicles.
Tesla has sought approval from state and federal officials to promote a fleet of taxis.
As the Post reported, Tesla is also facing increased competition with Chinese electric car brand BYD, recently surpassing mask companies with global sales, and is in the midst of major international expansion.
