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Tesla says it will be a victim of Trump admin’s tariff strategy

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Credit: Tesla

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.”

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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.

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

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A Saudi-backed developer is moving forward with one of the world’s largest AI data centers, and Elon Musk’s xAI will be its first customer. The project, unveiled at the U.S.–Saudi Investment Forum in Washington, D.C., is being built by Humain, a company supported by Saudi Arabia’s Public Investment Fund. 

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

xAI secures priority access

Nvidia CEO Jensen Huang stated that the planned data center marks a major leap not just for the region but for the global AI ecosystem as a whole. Huang joked about the sheer capacity of the build, emphasizing how unusual it is for a startup to receive infrastructure of such magnitude. The facility is designed to deliver 500 megawatts of Nvidia GPU power, placing it among the world’s largest AI-focused installations, as noted in a Benzinga report.

“We worked together to get this company started and off the ground and just got an incredible customer with Elon. Could you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away,” Huang said.

Global Chipmakers Join Multi-Vendor Buildout To Enhance Compute Diversity

While Nvidia GPUs serve as the backbone of the first phase, Humain is preparing a diversified hardware stack. AMD will supply its Instinct MI450 accelerators, which could draw up to 1 gigawatt of power by 2030 as deployments ramp. Qualcomm will also contribute AI200 and AI250 data center processors, accounting for an additional 200 megawatts of compute capacity. Cisco will support the networking and infrastructure layer, helping knit the multi-chip architecture together.

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Apart from confirming that xAI will be the upcoming supercluster’s first customer, Musk also joked about the rapid scaling needed to train increasingly large AI models. He joked that a theoretical expansion one thousand times larger of the upcoming supercluster “would be 8 bazillion, trillion dollars,” highlighting the playful exaggeration he often brings to discussions around extreme compute demand.

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Elon Musk

Elon Musk debunks pay package and lip reader claims in double takedown

Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.

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Elon Musk recently took to X to debunk some misinformation about his 2025 CEO performance award, as well as some comments he made during Donald Trump’s banquet in honor of Saudi Prince Mohammed bin Salman. 

Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.

Musk’s pay package

Elon Musk’s 2025 CEO performance award was created as a path for him to gain a 25% stake in Tesla. It would also make him a trillionaire, provided that he manages to meet all of the performance award’s aggressive targets. This has not stopped critics from running with the apparent narrative that Musk will be getting the $1 trillion with utmost certainty, however. 

This included the More Perfect Union account on X, which noted that “Elon Musk is set to make more than every U.S. elementary school teacher combined, according to the Washington Post.”

Musk responded to the pro-union amount’s post, highlighting that he has not earned any of his $2025 performance award so far. Musk also noted that those who believe he will be getting $1 trillion should invest in TSLA stock, as his compensation is tied to the company’s performance and growth. Investors who hold their TSLA until Musk achieves his full pay package would likely get notable returns.

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Lip reader fail

Musk also debunked claims from the Daily Mail, which claimed that he made an “explosive” remark at Trump’s banquet for Saudi Prince Mohammed bin Salman. Citing observations from lip reader Nicola Hickling, the Mail claimed that Musk asked Pfizer CEO Albert Bourla, “What is your opinion, is he a terrorist?” The publication also posted a video of Musk allegedly making the risqué comment on X.

Musk proceeded to correct the publication, stating that the lip reader’s observations were fake. Instead of asking the Pfizer CEO if the Saudi Prince was a terrorist, Musk noted that he was asking the executive about cancer medicine. “False, I was asking about upcoming cancer drugs,” Musk wrote in a response on X. 

Musk’s comments resulted in numerous critical responses to the Mail’s video, with some X users joking that the lip reader who analyzed the clip should probably get a visual acuity test, or a better training course on lip reading at least.

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Elon Musk

Elon Musk says he’s open to powering Apple’s Siri with xAI’s Grok

Siri, one of the first intelligent AI assistants in the market, has become widely outdated and outperformed by rivals over the years.

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

Elon Musk says he’s willing to help Apple overhaul Siri by integrating xAI’s Grok 4.1, igniting widespread excitement and speculations about a potential collaboration between the two tech giants. 

Siri, one of the first intelligent AI assistants in the market, has become widely outdated and outperformed by rivals over the years.

Musk open to an Apple collaboration

Musk’s willingness to team up with Apple surfaced after an X user suggested replacing Siri with Grok 4.1 to modernize the AI assistant. The original post criticized Siri’s limitations and urged Apple to adopt a more advanced AI system. “It’s time for Apple to team up with xAI and actually fix Siri. Replace that outdated, painfully dumb assistant with Grok 4.1. Siri deserves to be Superintelligent,” the X user wrote.

Musk quoted the post, responding with, “I’m down.” Musk’s comment quickly attracted a lot of attention among X’s users, many of whom noted that a Grok update to Siri would be appreciated because Apple’s AI assistant has legitimately become terrible in recent years. Others also noted that Grok, together with Apple’s potential integration of Starlink connectivity, would make iPhones even more compelling. 

https://twitter.com/elonmusk/status/1990651578965967050?s=20

Grok promises major Siri upgrades

The enthusiasm stems largely from Grok 4.1’s technical strengths, which include stronger reasoning and improved creative output. xAI also designed the model to reduce hallucinations, as noted in a Reality Tea report. Supporters believe these improvements could address Apple’s reported challenges developing its own advanced AI systems, giving Siri the upgrade many users have waited years for.

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Reactions ranged from humorous to hopeful, with some users joking that Siri would finally “wake up with a personality” if paired with Grok. Siri, after all, was a trailblazer in voice assistants, but it is currently dominated by rivals in terms of features and capabilities. Grok could change that, provided that Apple is willing to collaborate with Elon Musk’s xAI.

https://www.youtube.com/shorts/7JCwOa-IYuE?feature=share
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