Connect with us

Elon Musk

Tesla provides details on the impact of Trump’s auto tariff

With 85% of its U.S. lineup USMCA-compliant and localized supply chains, Elon Musk says Tesla is “least affected” by Trump’s auto tariffs.

Published

on

(Credit: Tesla)

During Tesla’s (NASDAQ:TSLA) Q1 2025 earnings call, Elon Musk the company’s Chief Financial Officer (CFO) provided details about President Trump’s auto tariffs and how they impact the company.

Elon Musk and other Tesla executives acknowledged that the company would face a few challenges resulting from President Trump’s auto tariffs. However, they also emphasized that Tesla is prepared for any tariff-caused headwinds.

Supply chain disruption is one of the challenges American automakers face due to Trump’s auto tariffs. With regards to supply chain, Musk stated that Tesla has been working to localize its supply chain for years–even prior to Trump’s second presidency. As a result, Tesla is able to mitigate some supply chain risks.

Advertisement

“And so we are, I think, the least affected car company with respect to tariffs, at least in most respects. I mean, it remains to be seen. Now, tariffs are still tough on a company when margins are still low, but we do have localized supply chains in North America, Europe, and China. So that puts us in a stronger position than any of our competitors,” Elon Musk stated.

Tesla CFO Vaibhav Taneja offered more details about the company’s region-based approach to its supply chain, specifically in North America. Taneja noted that the Tesla Model Y has been rated the most American-made model by Car.com three years in a row, showing that Tesla has already started localizing its supply chains.

“This is in part is [from] all the work which the team has been doing over the years. And to the extent that today, you know, if you look at our vehicle lineup in [the] US, we’re about approximately on a weighted average basis, 85% USMCA compliant,” said Taneja, referring to the US-Mexico-Canada Agreement.

However, Taneja also noted that Trump’s auto tariffs coming in May will impact Tesla because it will affect trade with Canada and Mexico. Next month, Trump plans to impose 25% tariffs on auto parts imported into the United States. The Tesla CFO shared that Canada and Mexico are part of the company’s regionalization strategy. As a result, the Trump auto tariffs in May will impact Tesla’s profitability.

Wedbush analyst Dan Ives noted that Tesla is best positioned to take on Trump’s tariffs on auto parts. The analyst listed Tesla’s localization strategy and Musk’s work with President Trump as reasons the electric vehicle maker may have an edge over the Detroit Big Three when facing auto tariffs.

Advertisement

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

Elon Musk

Tesla Diner is throwing a birthday party with a Franz-signed special treat

Tesla Diner turns one on July 21 with Optimus, roller skates, and a Franz-signed hat.

Published

on

By

tesla diner

Tesla is throwing its Hollywood Diner a first birthday party on July 21 and the celebration comes with a guest list of unique items, including a limited run of Tesla Diner birthday hats personally signed by Tesla Chief Designer Franz von Holzhausen for the first 50 customers who place an in-car order at midnight.

One year after lines wrapped around the block on Santa Monica Boulevard for a diner that most of the restaurant industry did not take seriously, Tesla is making the case that the concept was worth the years it took to build. The concept had been in Musk’s head since at least 2018, when he floated the idea of “an old school drive-in, roller skates and rock restaurant” on X, describing it years later as “‘Grease’ meets ‘The Jetsons’ with Supercharging.”

Tesla Optimus Gen 3 is coming to the Tesla Diner with new ambitions

 

What made the diner genuinely different from any restaurant that came before it was not the menu or the nostalgia. It was the ordering model. Tesla owners could place food orders directly from their vehicle’s touchscreen before arriving, a small feature that hints at something much larger on the horizon. As the Cybercab and unsupervised FSD expand across major cities, the diner model becomes a template for an entirely new kind of commerce. A robotaxi pulling in to charge does not need a human to walk up to a counter. The vehicle places the order, the food is ready on arrival, and the passenger never interrupts the experience of being driven somewhere else. It is the first glimpse of what drive-through commerce looks like when the car is doing the driving.

As Teslarati has reported, Musk signaled immediately after opening that the Hollywood location was only the beginning, posting that Tesla would expand the concept to major cities worldwide and along Supercharger corridors on long-distance routes if the first location proved successful. One year in, the birthday celebration on July 21 makes a strong case that it has. Tesla announced a full day of events including a Cybercab on display, a birthday menu, Optimus in attendance, face painting, a photo booth, roller skating servers, a light show, a Skypad DJ, and complimentary collectibles.

If Musk’s ambition holds, the Hollywood diner is year one of something much bigger. The birthday party is the proof of concept. The robotaxi fleet is the business model waiting behind it.

Continue Reading

Elon Musk

Elon Musk says your Tesla will start to learn your individual preferences

Published

on

Credit: Tesla

Elon Musk said today on X that Teslas will start to learn your individual preferences. This is something that he seemed to hint toward earlier this month when he said parking was by far the biggest reason drivers intervene with Full Self-Driving.

Musk made the comment in response to notable Tesla influencer Whole Mars, who said that his vehicle will sometimes disobey the settings he has enabled for his car. He responded to the post, stating that “The car will start to remember your specific interventions and match each person’s individual preferences.”

This is something that could be perhaps one of the biggest ways Tesla could minimize or even work closer toward eliminating interventions altogether. While FSD does a lot of things really well, many people intervene a vast majority of the time not due to major or critical safety errors.

Instead, many take over because the car is doing something that they do not like as a preference; it might park in a parking spot that is not preferred by the driver, it might linger too long in the left lane on the highway (a personal favorite), or it could even take a route that the driver does not like.

These all lead to interventions, but they are not triggered by a major safety issue. Instead, it’s just preference.

READ OUR REVIEW OF TESLA’S LATEST FSD VERSION:

Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance

If Teslas could start to learn the personal preferences of the person who owns them, interventions will truly begin to be less frequent. Some of this is already pretty evident, in my opinion. Teslas use a neural network to learn behaviors and accumulate data to improve performance.

For months now, we’ve tracked FSD’s performance at “Except Right Turn” stop signs, something that is very common in Pennsylvania, but many of our readers located in other parts of the U.S. have never heard of. FSD handles one Except Right Turn stop sign very well, one that I travel past frequently. Others that I do not navigate through as often do not have as confident a performance. It seems like the cars might already be doing this to an extent.

That example is also for something that is a street sign and not necessarily a driver preference; however, I still feel it is worth mentioning because it only handles that commonly passed Except Right Turn stop sign with true confidence. Others it still seems to struggle with.

This could be one of Tesla’s big moves toward full autonomy, and it could be a pathway to truly unsupervised driving. Every day, millions of cars on the road travel at a human driver’s personal preferences with no incident. Why can’t autonomous vehicles still cater to a passenger’s preferences while being autonomous? Tesla seems to have the idea that it would be possible.

Continue Reading

Elon Musk

SpaceX announces new Starship 13 test flight target date

Published

on

SpaceX Starship V3 flight 12
SpaceX Starship V3 flight 12 (Credit: SpaceX)

SpaceX has announced a new target date for the thirteenth test flight of Starship: Monday, July 20, with the launch window opening at 6:45 p.m ET/5:45 p.m. CT.

This is the first rescheduling attempt of Starship’s 13th test flight. It was set to launch last night, but SpaceX scrubbed the launch attempt.

CEO Elon Musk revealed that some of the engines on Starship did not start, which automatically triggers a launch abort. Two of the Raptor engines will be removed and replaced.

SpaceX officially announced the new launch window this morning.

Starship’s 13th test launch comes with a few new objectives, but SpaceX does not plan to attempt a catch of the booster, which it has done several times in the past.

For Starship’s Upper Stage, there are some adjustments to ensure engine reusability that will be assessed during the ascent, and 20 operational Starlink V3 satellites are also set to make their way into space. SpaceX also plans to attempt an in-space relight of a single Raptor engine, which is a critical demonstration for future orbital deorbit, refueling, and deep space maneuvers.

Ultimately, it will splash down in the Indian Ocean.

The continuous tests help SpaceX advance the Starship program toward eventual full reusability, operational Starlink V3 deployment, and future missions, which include NASA’s Artemis program.

Continue Reading