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The world’s richest man’s electric car company and the rest of his businesses are “built on $38 billion in government funding,” something the Department of Government Efficiency has overlooked. But Elon Musk , who heads DOGE, is reportedly set to feel government financial pain after all thanks to President Donald Trump ‘s trade war. According to Reuters , “plans to ship components from China for (Tesla’s) Cybercab and Semi electric trucks in the United States were suspended after President Donald Trump raised tariffs on Chinese goods amid a trade war, said a person with direct knowledge.
” Musk had reportedly planned to begin trial production of the two vehicle models in October and begin mass production in 2026. But that’s currently all in jeopardy, per the report. “The move could disrupt Tesla’s plan to start mass production of the much-anticipated models, which its CEO Elon Musk has been touting to investors as major innovations providing growth momentum of the U.
S. automaker," per Reuters. "Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended, said the person, who declined to be named as the matter is private.
Trump raised additional tariffs to 84% on April 9 and has since increased that to 125%, bringing the total tariffs on Chinese goods exported to the U.S. to 145%.
" This news comes after Tesla sales fell 13% in the first three months of the year. The leading electric vehicle maker has faced a growing backlash from Musk’s embrace of right-wing politics and his role in the Trump administration. Opponents have staged protests at Tesla showrooms in the U.
S. and in Europe, where the sales declines have been steeper. Tesla reported deliveries of 336,681 globally in the January to March quarter.
The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives and could be a warning that the company’s first-quarter earnings report later this month could disappoint investors. Tesla cars have been smashed and set on fire in recent weeks, and protests have been staged at hundreds of Tesla dealerships.
Owners have put bumper stickers on their cars saying, “I bought this before Elon went crazy.” Europeans have also balked at buying Tesla, especially Germans upset after Musk publicly supported a far-right party in national elections and gave a Nazi-like salute at a Trump inauguration rally in January. The Associated Press contributed to this report.
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