Elon Musk
Tesla says it will be a victim of Trump admin’s tariff strategy
Tesla said in a letter to U.S. trade representative Jamieson Greer that it would be a victim of the Trump administration’s tariff imposition strategy, stating it would not be immune to rising costs that could increase the price of its electric cars.
In a letter from Tesla to Greer that was seen by Financial Times, the EV maker said it would be “difficult or impossible” to source some parts of its cars domestically due to supply chain limitations. While it “supports” fair trade, it let the Trump White House know that it would also be exposed to some of the impacts that could be felt as a result of the tariffs:
“Nonetheless, even with aggressive localisation of the supply chain, certain parts and components are difficult or impossible to source within the US.”
It also urged Greer to:
“further evaluate domestic supply chain limitations to ensure that US manufacturers are not unduly burdened by trade actions that could result in the imposition of cost-prohibitive tariffs on necessary components.”
Tesla also sends vehicles to countries like Canada, which are subject to tariffs. The company said the actions by the U.S. “have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries.”
The letter, dated March 11, was written on the same day President Trump purchased a Deep Red Tesla Model S Plaid in an event in front of the White House featuring Musk alongside the President.
President Donald Trump buys a Tesla at the White House – Here’s which model he chose
Tesla’s a great company; they’re American cars, it’s American made. He employs thousands of people. He has the most modern plants in the world,” Trump said on Tuesday. “I know people that have these cars; It blows them away. They love them.”
The letter shows that, while Musk and Trump are currently working alongside one another to iron out government spending, a task the Tesla CEO took on willingly as he campaigned for the President last election season, one thing remains: business is business.
Tesla has pushed prices upward in Canada as a response to the tariffs. Other vehicles in the Tesla lineup, including the flagship Model X, have had their prices see minor increases as well, and this is for U.S. customers.
The Trump administration has played hardball with Canada with tariffs, only for our neighbors up north to impose countertariffs on electric supply to some of the states in the Northeast. It seems, at least early on in as Trump establishes a narrative in his White House of how the U.S. will be treated, there will be some effects that impact Musk’s companies as he works alongside the President.
Elon Musk said the Tesla Cybercab will perform “a majority of all passenger miles” where it is allowed to operate and that point is “obvious to anyone with eyes and a brain.”
Musk used the point to double down on the company’s decision to ax the cult-favorite Cybertruck, as its production space will be removed and transitioned into additional Cybercab lines. The move has catalyzed a polarizing conversation on whether its right or wrong.
Whatever side you are on — it’s happening.
Dodge ended the Viper.
Audi retired the R8.
Mitsubishi said goodbye to the Lancer Evo.
Ford bid farewell to the Bronco (at one point).
Chevrolet sunset the Camaro.Tesla is ending the Cybertruck. I’m pissed. I’m upset.
Fans of those five automakers mentioned did the same thing. It happens. It sucks. I don’t like it.
But I still love Tesla. I love my Model Y. I hoped to be in a Cybertruck in a little under two years.
I won’t be. But I still won’t put my family in anything else. Too safe. Too advanced. Too much better than everything else.
— TESLARATI (@Teslarati) November 10, 2026
Regardless, Musk seems to be getting to the point that he is done talking about the choice. At some point, you have to think that this was truly a difficult decision for him and the company as well, and this is not something he took lightly. In fact, he’s probably a little bit disappointed with it, too.
But the point remains that the Cybertruck is gone. Musk’s focus is purely on developing an autonomous platform that the world will utilize for transportation, and he’s telling you that anyone “with eyes and a brain” can see it:
@PalmerLuckey @carlhancock Cybercab will do a majority of all passenger miles in any jurisdiction where it is not prohibited by law.
Obvious to anyone with eyes and a brain.
— Elon Musk (@elonmusk) November 10, 2026
Tesla is betting that all of its passengers in the future will be okay with not owning their own personal cars and will be fine with ride-hailing for the rest of their lives. Every dinner, every errand, every trip to the airport and transportation thereafter, will all be operated by ride-sharing, and in Tesla’s perfect world, it will happen in a Cybercab.
As of now, Cybercab is only active in Austin, but it has been spotted all over the country with a driver behind the wheel in those prototypes. In Austin, the car has no steering wheel or pedals for people to control the vehicle.
The Cybertruck dilemma is one that has truly come across the entire Tesla community and while it seems to be a great idea to keep it because people love it, the business side of things is steering Musk and Tesla in another direction.
Tesla has slimmed its Cybertruck offerings to offer only its most expensive trim: the Cyberbeast.
After announcing that the Cybertruck would no longer be produced and the company would wind down manufacturing sometime in the middle of 2027, Tesla started to eliminate some of the configurations offered to customers.
Tesla has stopped taking orders for the Cybertruck Premium AWD.
The Cyberbeast is now the only trim you can order, and its price went up $7,500 to $109,990.
Estimated deliveries have also slipped to March–June 2027 as the Giga Texas line heads toward its mid-2027 wind-down. https://t.co/o28epA0ZQl
— TESLARATI (@Teslarati) November 10, 2026
Now, only one remains: the $109,990 Cyberbeast. This is truly what seems like Tesla’s last effort to deter any remaining orders from coming in: eliminate the cheap trims and leave only the high-dollar vehicle within the lineup of Cybertruck options.
Those who want to take advantage of this last-ditch opportunity to own Tesla’s symbolic pickup have to pay to play.
Tesla says the reason for the wind down is truly because of Cybercab and its importance to the future.
Despite cries for Tesla to continue production of the pickup, Musk says it is too difficult to ramp a high-volume line instead of ending the truck altogether. He also says Cybercab is what will take passengers around for the “majority of all miles in any jurisdiction where it is not prohibited by law.”
@PalmerLuckey @carlhancock Cybercab will do a majority of all passenger miles in any jurisdiction where it is not prohibited by law.
Obvious to anyone with eyes and a brain.
— Elon Musk (@elonmusk) November 10, 2026
Tesla is going all in on autonomy, and that’s never been a secret. But the commitment to a two-door, two-seat Cybercab truly limits people from having options for labor or hobbies. It also limits people from having their entire family in a single car.
Parents with even a single child will be required to take multiple vehicles if Cybercab is truly the only option Tesla plans to have.
Elon Musk keeps justifying Tesla Cybertruck’s cancelation, but it’s confusing
Tesla has stated the Robovan will also be in production eventually, but it still does not seem like the most ideal vehicle to own. It seems like it is geared more toward commercial uses, but Tesla might have something in the pipeline for families.
Elon Musk continues to shed more reasons that justify the cancelation of the Tesla Cybertruck, but some of the reasons for the sunset, as well as the process the company is choosing, do not make a lot of sense.
Musk announced last week on X that Tesla would wind down Cybertruck production in mid-2027, a decision that aims to prioritize Cybercab and its importance to the company’s future and passenger transportation as a whole.
But some of what Tesla and Musk are saying does not seem to make much sense. From the process the company is taking with orders to some of the reasoning for the cancelation, the whole situation seems strange.
With that being said: I totally see the merit in prioritizing Cybercab, but I also believe there is room for Cybertruck, a vehicle that has traditionally had low volumes, especially now at its current price point. If it were not for the cancelation, Cybertruck would sell very few units with the recent price adjustments.
Musk Talks Order Rate vs. Production Rate
The first thing that does not make a lot of sense here is the fact that this morning, Musk said that “The Cybertruck order rate far exceeds our production rate. We will try to make as any as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people.”
The Cybertruck order rate far exceeds our production rate. We will try to make as many as possible before shutting down the line in about 8 months, but will have to return deposits for a lot of people.
This is not a case of Cybertruck being unprofitable, as has been misreported by legacy media, but rather that the opportunity cost of the complexity of Cybertruck is vastly outweighed by the value of incremental Cybercab production.
— Elon Musk (@elonmusk) November 9, 2026
Then why is Tesla STILL accepting orders for the Cybertruck if it already cannot fulfill its order log by mid-2027?
There are so many people ordering Cybertruck that will not receive it. If Tesla already is having trouble seeing how it will build its current orders, why would it allow additional ones?
There are going to be a lot of people who are very upset next June or July, all because they placed an order for a truck that Tesla knew it would not have the time to build. At this point, it seems like a better idea from a customer service standpoint to simply stop accepting orders on a certain date, build those trucks, fulfill those orders, and then close production.
Continuing to accept orders at this point seems wildly strange. If anything, it feels like the $59k Cybertruck orderers will be the ones who get the short end of the stick here, but that’s speculation and just a hunch on my end.
If not Cybertruck, then what?
With only the Model 3 and Model Y available for consumers, meaning the general public, to buy, there is now no utility vehicle in the Tesla lineup, and that is definitely a disappointment.
Ford already washed its hands of the Lightning, which means the Rivian R1T will likely be the best-selling EV pickup on the market, dueling with the GMC Hummer Pickup, Chevy Silverado EV, and the GMC Sierra EV. There are several pickups that are set to hit the market soon, like the Slate EV Truck, and Ford’s new EV pickup, the Fathom.
Tesla could provide some some transparency on what it is planning to do with a future pickup or utility design. Musk said in the past that something much cooler than a minivan will be built. Cries for a full-size SUV have been heard by Tesla, but the company seems to adamant on prioritizing ridesharing vehicles instead of vehicles people want for work, climate, or hobbies.
Some clarity here, past the point of “Tesla is still going to build cars” would be nice. Even a simple, “Yes” response from all the people asking if Tesla will build something larger would be more than enough. We don’t need all the details now, but something would be nice.
Closing Thoughts
More than anything, it is important to note that I do believe Tesla is making a tough decision and one that, from a business standpoint, does make sense. However, I also believe that there is room for the Cybertruck in Tesla’s lineup.
One thing I think it’s worth mentioning is Tesla is not that much different from many companies. They do things that are better for the business that will surely upset consumers. The difference is very few companies have a following like Tesla, so when these things happen, they feel very personal.
Add in the fact that Cybertruck has truly become a symbol of Tesla, and people are even more upset about it.
It will all get figured out, but it’s still very confusing when we step back and take a look at the bigger picture.
Elon Musk says Tesla Cybercab future is ‘obvious to anyone with eyes and a brain’
Tesla slims Cybertruck offerings to only its most expensive trim
