Tesla faces a fresh hurdle after President Donald Trump announced 25% tariffs on all non-U.S.-made cars on Wednesday. The President clarified that Elon Musk stayed silent and provided no input into the 25% tariffs.

“He may have a conflict,” Trump noted. He added that Musk, who heads Tesla and the efficiency-driven DOGE initiative, has never asked for business favors.

Trump’s tariffs are set to begin on April 2 for imported cars, and by May 3, the levies will hit imported auto parts, stirring questions about Tesla’s fate. Trump told reporters the impact might be “net neutral or good,” mentioning Tesla’s plants in Austin, Texas, and Fremont, California.

“Anybody with plants in the U.S.—it’s going to be good for them,” he said. Yet Tesla recently warned the U.S. Trade Representative in a letter that “certain parts and components are difficult or impossible” to source domestically, even with ‘aggressive localization.’ The company urged caution over the “downstream impacts” of trade actions.

According to CNBC, Tesla and other automakers rely on foreign suppliers in Mexico, Canada, and China for headlamps, brakes, glass, suspension parts, and circuit boards. Musk has commented that Trump’s tariffs would significantly impact Tesla.

Trump’s tariffs have affected companies abroad, including Tesla suppliers in India. Competition is heating up as more brands roll out electric models, though China’s BYD remains barred from U.S. sales. Shares of Tesla, General Motors, Ford, and Rivian dipped slightly after hours following the announcement.

Tesla suppliers in India, including Tata Motors and key auto parts makers, saw sharp declines on Thursday after U.S. President Donald Trump unveiled plans to impose 25% tariffs on all imported cars and auto parts.

According to the Trump Administration, the U.S. President’s 25% tariffs will hit imported cars and light trucks coming into the United States by April 2, 2025. By May 3, 2025, Trump’s tariffs will extend to include auto parts. The decision sent shockwaves through the global auto industry, with Tesla CEO Elon Musk noting on X that the impact on the EV giant is “significant.”

Despite Musk’s words, many believe that Tesla will benefit from Trump’s tariffs. Although, it would probably adversely affect Tesla’s plans to enter the Indian market. Tesla has already started the certification process for two vehicles in India.

Following Trump’s tariff announcements, Tata Motors dropped 5%, while Sona Comstar, Tesla’s largest Indian supplier, fell over 4%, dragging the auto sector down 1.2% in India, the world’s third-largest auto market. Reuters reported that Tata Motors-owned Jaguar Land Rover (JLR), which exports luxury vehicles from the UK and Slovakia, relies heavily on the U.S. as a key market.

Other Indian suppliers felt the strain as well. Samvardhana Motherson, a major auto parts provider, slipped over 2%. Meanwhile, Tesla supplier Bharat Forgedipped by 0.4%. The U.S. accounts for 20% of Samvardhana’s revenue and 40% of Sona Comstar’s, with North America as its dominant region. The downturn echoed broader losses among global carmakers like Toyota, Hyundai, Stellantis, and Ford–all of which saw shares slide after the tariff news broke.

Tesla is rolling out some improvements to the Steer-by-Wire system on Cybertruck, which is one of the features exclusive to the vehicle as it is not active on any other vehicle in the company’s all-electric lineup.

Steer-by-wire is a steering system that turns the direction of wheels mechanically. It differs from vehicles with typical electric power steering systems in the way that those rely on the steering wheel column to transfer steering torque to the wheels.

There are a handful of EVs that use steer-by-wire, including the Cybertruck, Hummer EV, and Silverado EV. The latter two use a traditional steering column and only have steer-by-wire on their rear wheels, so they differ from the system the Cybertruck uses.

Credit: Tesla

The system has made the massive Cybertruck have better steering, and although its size is large, it is one of the easier Tesla vehicles to steer through tight spaces — granted you have the room.

Tesla is making an improvement to the system, according to a new update that will roll out in the 2025.8.4 Software Update as the steering wheel is now going to give more realistic feedback by adapting to road surfaces, the company said (via Not a Tesla App):

“The steering wheel now gives you more realistic feedback, adapting to different road surfaces for a better driving experience.”

This feature will work alongside another improvement as the Cybertruck’s air suspension ride height is now adjustable through the Tesla App.

Tesla Cybertruck steer-by-wire system helps avoid potential collision

The changes from the update, in terms of the more realistic feedback, will improve the overall feel of the road for drivers, making for a better driving experience.