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Elon Musk clarifies Trump tariff effect on Tesla: “The cost impact is not trivial”

The U.S. President has stated that Elon Musk stayed silent and provided no input in the administration’s tariffs.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

U.S. President Donald Trump’s plan to implement a 25% tariff on non-U.S.-made vehicles starting next week would affect American electric car maker Tesla. 

This was confirmed by CEO Elon Musk in a recent post on social media platform X.

Musk and Trump

While Elon Musk works closely with the Trump administration due to his role in the Department of Government Efficiency (DOGE), the U.S. president has emphasized that the Tesla CEO never asks for favors. This was highlighted in his recent comments, when he stated that Elon Musk stayed silent and provided no input in the administration’s 25% auto tariffs.

When asked by reporters if the new tariffs would be good for Tesla, Trump noted that they may be “net neutral or they may be good.” The U.S. president also pointed to Tesla’s automotive plants in Fremont, California and Austin, Texas, which produce vehicles that are sold in the country. “Anybody that has plants in the United States — it’s going to be good for them,” Trump noted.

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Tesla Affected

In a post on X, Elon Musk clarified that the Trump administration’s tariffs would affect the prices of vehicle parts that are sourced from other countries. This was a concern that Tesla previously outlined in a letter to the U.S. Trade Representative, which noted that even with “aggressive localization” of its supply chain, “certain parts and components are difficult or impossible to source within the United States.”

As per Musk in his recent post on X, the cost impact of the Trump administration’s tariffs is no joke. “To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote in his post.

Potential Effects

Reactions to Musk’s comments from users of the social media platform were varied, with some speculating that the Trump auto tariffs could result in Teslas becoming more expensive in the United States. Despite this, the potential increases in Tesla’s vehicle prices might not be as notable as other cars, particularly those that are produced outside the country.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Music City Loop could highlight The Boring Company’s real disruption

The real story behind the tunneling startup’s Nashville tunnel project is the company’s targeted $25 million per mile construction cost.

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Credit: The Boring Company/X

Recent commentary on social media has highlighted what could very well prove to be The Boring Company’s real disruption.

The analysis was shared by tech watcher Aakash Gupta on social media platform X, where he argued that the real story behind the tunneling startup’s Nashville tunnel project is the company’s targeted $25 million per mile construction cost.

According to Gupta’s breakdown, Nashville’s 2018 light rail proposal was priced at roughly $200 million per mile. New York’s East Side Access project reportedly cost about $3.5 billion per mile, while Los Angeles Metro expansion projects have approached $1 billion per mile.

By comparison, The Boring Company has stated it can construct 13 miles of twin tunnels in the Music City Loop for between $240 million and $300 million total. That implies a cost near $25 million per mile, or roughly a 95% reduction from industry averages cited in the post.

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Several technical departures from conventional tunneling allow the Boring Company to lower its costs, from its smaller 12-foot diameter tunnels to its fully electric Prufrock machines that are designed to mine continuously with no personnel inside the tunnel and their capability to “porpoise” for easy launch and retrieval.

Tesla and Space CEO Elon Musk responded to the post on X, stating simply that “Tunnels are so underrated.”

The Boring Company has seen some momentum as of late, with the company recently signing a construction contract in Dubai and the Universal Orlando Loop progressing. Recent reports have also pointed to tunnels potentially being constructed to solve traffic congestion issues near the Giga Nevada area. 

While The Boring Company’s tunnels have so far been used for Loop systems publicly for now, Elon Musk recently noted that the tunneling startup’s underground passages would not be limited only to ride-hailing vehicles. 

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In a reply to a post on X which discussed the specifications of the Music City Loop, Musk clarified that “any fully autonomous electric cars can use the tunnels.” This suggests that vehicles potentially running systems like FSD Supervised, even if they are not Teslas, could be used in systems like the Music City Loop in the future.

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Elon Musk

SpaceX IPO could push Elon Musk’s net worth past $1 trillion: Polymarket

The estimates were shared by the official Polymarket Money account on social media platform X.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

Recent projections have outlined how a potential $1.75 trillion SpaceX IPO could generate historic returns for early investors. The projections suggest the offering would not only become the largest IPO in history but could also result in unprecedented windfalls for some of the company’s key investors.

The estimates were shared by the official Polymarket Money account on social media platform X.

As noted in a Polymarket Money analysis, Elon Musk invested $100 million into SpaceX in 2002 and currently owns approximately 42% of the company. At a $1.75 trillion valuation following SpaceX’s potential $1.75 trillion IPO, that stake would be worth roughly $735 billion.

Such a figure would dramatically expand Musk’s net worth. When combined with his holdings in Tesla Inc. and other ventures, a public debut at that level could position him as the world’s first trillionaire, depending on market conditions at the time of listing.

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The Bloomberg Billionaires Index currently lists Elon Musk with a net worth of $666 billion, though a notable portion of this is tied to his TSLA stock. Tesla currently holds a market cap of $1.51 trillion, and Elon Musk’s currently holds about 13% to 15% of the company’s outstanding common stock.

Founders Fund, co-founded by Peter Thiel, invested $20 million in SpaceX in 2008. Polymarket Money estimates the firm owns between 1.5% and 3% of the private space company. At a $1.75 trillion valuation, that range would translate to approximately $26.25 billion to $52.5 billion in value.

That return would represent one of the most significant venture capital outcomes in modern Silicon Valley history, with a growth of 131,150% to 262,400%.

Alphabet Inc., Google’s parent company, invested $900 million into SpaceX in 2015 and is estimated to hold between 6% and 7% of the private space firm. At the projected IPO valuation, that stake could be worth between $105 billion and $122.5 billion. That’s a growth of 11,566% to 14,455%.

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Other major backers highlighted in the post include Fidelity Investments, Baillie Gifford, Valor Equity Partners, Bank of America, and Andreessen Horowitz, each potentially sitting on multibillion-dollar gains.

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SpaceX considering confidential IPO filing this March: report

The filing could pave the way for a June listing at a valuation that may exceed $1.75 trillion.

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Credit: SpaceX/X

SpaceX is reportedly preparing to confidentially file for an initial public offering (IPO) as soon as March. The filing could pave the way for a June listing at a valuation that may exceed $1.75 trillion, potentially making it the largest IPO in history.

The update was initially reported by Bloomberg News, which cited information shared by people reportedly familiar with the matter. 

As per the publication, a confidential filing allows a company to receive regulatory feedback before publicly releasing its financials. Bloomberg’s source, however, noted that the timing of SpaceX’s IPO is still under discussion and plans could change.

SpaceX did not immediately respond to requests for comment.

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A March submission would mark the clearest step yet toward bringing Elon Musk’s private space company into public markets. People familiar with the preparations said the offering could raise as much as $50 billion. That would surpass the $29 billion debut of Saudi Aramco in 2019, currently the largest IPO on record.

Major banks including Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Bank of America Corp. are reportedly positioned for senior roles in the transaction. SpaceX is also said to be considering a dual-class structure that would allow insiders, including Musk, to retain enhanced voting control.

Satellite communications provider EchoStar Corp., which holds a stake in SpaceX, reportedly saw its shares rise following news of the potential filing.

At a valuation exceeding $1.75 trillion, SpaceX would immediately have a larger market cap than all but five of the companies traded in the S&P 500 index. That figure would place it ahead of Meta Platforms Inc. and Tesla Inc. by market capitalization, trailing only a small group of mega-cap firms such as Apple Inc. and Microsoft Corp.

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The scale of the proposed valuation reflects SpaceX’s dominance in orbital launch services and its Starlink satellite network, which serves millions of users globally. The company has also outlined long-term expansion plans tied to higher Starship launch cadence, orbital infrastructure, and lunar development initiatives.

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