U.S. President Donald Trump formally launched tariffs on imports from Canada, Mexico, and China over the weekend, a decision that is widely expected to have sweeping implications for Tesla, other automakers, and a broad range of other industries.
The Trump administration announced the news on Saturday, effectively establishing a 25-percent tariff on Canadian and Mexican imports as well as a 10-percent tariff on products from China. The tariffs will go into effect on Tuesday, and they have already caused ripple effects and a larger trade war with some of the companies.
Canada Prime Minister Justin Trudeau and Mexico President Claudia Sheinbaum spoke on the phone over the weekend, and while Sheinbaum hasn’t yet formalized or disclosed plans for counter-tariffs, Trudeau announced some on Saturday evening, according to Reuters. In the announcement, the Prime Minister said that Canada with also establish a 25-percent tariff on $155 billion worth of products from the U.S.
Trudeau has said that the government will release an updated list of products and tariff details, though the initial list included products such as certain appliances, beer, wine, lumber and other goods. He also says that the government plans to start with $30 billion on Tuesday, as followed by the additional $125 billion later this month.
The Trump administration says the tariffs are aimed at “addressing an emergency situation” related to the import of illegal drugs including fentanyl, along with pointing the blame at illegal immigrants.
“President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country,” the White House writes on its fact sheet dedicated to the order.
You can see the full fact sheet from the White House here, or check out the full executive order here.
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On Sunday, Trump also followed up with a post on his Truth Social account in response to criticism:
The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the “Stupid Country” any longer. MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS! Why should the United States lose TRILLIONS OF DOLLARS IN SUBSIDIZING OTHER COUNTRIES, and why should these other countries pay a small fraction of the cost of what USA citizens pay for Drugs and Pharmaceuticals, as an example? THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.
Following a repost of Trump’s words on X, community notes pointed to a TD Economics saying that the U.S. has had a trade surplus with Canada for the last sixteen years straight when not including the energy sector, or oil, natural gas and electricity.
Multiple others have weighed in on how the tariffs could affect the industry at large, highlighting the potential for price increases for the consumer, potential layoffs, and some even saying that it will shut the auto industry down altogether.
In a report from Bloomberg on Sunday, Flavio Volpe, the President of the Canada Automotive Parts Manufacturers’ Association, said that he doesn’t think the country’s auto parts makers will be able to remain profitable with the tariffs in place.
“The auto sector is going to shut down within a week,” Volpe said. “At 25 percent, absolutely nobody in our business is profitable by a long shot.”
Others have warned of even more immediate effects, especially for Canadian and Mexican cities and states whose communities rely heavily on automotive manufacturing. One such city includes Windsor, Ontario, where John D’Agnolo, the union president of a local Ford factory there, says substantial numbers of layoffs could be imminent.
“We’re talking about thousands and thousands of jobs being lost,” D’Agnolo said. “We’d truly be a ghost town, here in Windsor, if we lost this type of business.”
Ontario Premier Doug Ford has also warned that it could affect as many as 500,000 jobs across the province, which is Canada’s most populated, with many of those being automotive roles.
Many also expect the increased costs to be passed onto the consumer, though it’s still unclear exactly what the repercussions of the tariffs could be. We could also see businesses absorb some or all of these costs, though some initial research seems to suggest that buyers will see higher sticker prices across the industry.
“It is going to be a lot of impact,” Aruna Anand, chief executive officer of parts supplier Continental AG’s North American business, said in an interview. “The question is who is absorbing the price and it becomes, are we able to absorb that price or is it going to be shifted to the end consumer?”
In a separate report from Reuters on Saturday, it was suggested that automakers such as General Motors (GM) and Toyota could, however, shift more production from overseas factories to those in the U.S., while major aluminum manufacturer Alcoa is considering re-routing plans that could potentially reduce tariffs. Many electric vehicle (EV) battery materials also come from metal mining operations in China, with some of these sectors just beginning to emerge domestically.
Others also report that the move could “undermine competitiveness” in the American auto industry, ultimately increasing the cost of building cars in the U.S.
“Our American automakers … should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American workforce,” says Matt Blunt, the President of the American Automotive Policy Council, which represents Stellantis, GM and Ford.
During Tesla’s Q4 earnings call last week, Chief Financial Officer Vaibhav Taneja also warned that tariffs could affect profitability for the company, since its all of its production facilities utilize parts from around the globe.
“There’s a lot of uncertainty around tariffs,” Taneja said. “Over the years, we’ve tried to localize our supply chain in every market, but we are still very reliant on parts from across the world for all our businesses. Therefore, the imposition of tariffs, which is very likely, will have an impact on our business and profitability.”
It’s still not quite clear at this time how the tariffs may affect Tesla’s prices. While Tesla has regularly advertised having the “most American-made cars” with final assembly for the market taking place at its factories in Texas and California, the company also gets a significant amount of components from Canada.
In a filing with the National Highway Traffic Safety Administration (NHTSA) in October, Tesla did disclose what percentage of its vehicle parts are made in either Canada or the U.S., as compared to other countries such as Mexico and Japan. Some of the figures also don’t disclose where the remaining amounts come from, though they can give users an idea of how many components come from Mexico compared to either the U.S. or Canada.
You can see that data for Tesla’s vehicles below, though it’s also worth noting that it does not show the ratio of U.S. to Canadian parts—just a combined percentage from the two countries. You can also view the full filing from the NHTSA here.
- Cybertruck: 65 percent from U.S. and Canada; 25 percent from Mexico
- Model 3 Long Range: 75 percent from U.S. and Canada; 20 percent from Mexico
- Model 3 Performance: 70 percent from U.S. and Canada; 20 percent from Mexico
- Model Y (all trims): 70 percent from U.S. and Canada; 25 percent from Mexico
- Model S: 65 percent from U.S. and Canada; 20 percent from Mexico
- Model X: 60 percent from U.S. and Canada; 25 percent from Mexico
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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Elon Musk
Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one
Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.
Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.
Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.
The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.
🚨 Elon Musk says Tesla’s Robotaxi geofence in Austin will get “even bigger and longer” in “a couple weeks or so” pic.twitter.com/0gLeKfURMi
— TESLARATI (@Teslarati) July 23, 2025
The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”
Musk’s full quote regarding the expansion of the geofence and the timing was:
“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”
The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.
Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.
Musk added:
“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”
We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.
Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.
Elon Musk
Tesla gives a massive update on its affordable model plans
Tesla’s affordable model won’t have the opportunity to cannibalize sales of the Model 3 and Model Y as the company will wait until Q4 to launch it.
Tesla gave a massive update on its plans to launch a potential lineup of affordable models, something that it has been developing for the past couple of years.
During its Q2 2025 Earnings Call yesterday, Tesla revealed some new details regarding the production plans of the affordable vehicles, and while the company did not shed any light on the potential price, we now have some information on the plans and timing of the cars.
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In the Shareholder Deck released at the time the market closed, Tesla said it successfully completed initial production of the affordable models in the first half of the year, more specifically in June. The company said these vehicles would begin volume production in the second half of this year:
“We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume production planned for the second half of 2025.”
During the call itself, CEO Elon Musk confirmed these cars would be available starting in Q4. This makes sense as the EV tax credit will not expire until the end of Q3. Launching the affordable models before the tax credit is gone would likely cannibalize sales of Tesla’s current mass market vehicles, meaning the Model 3 and Model Y.
Musk said:
“As we said, we started production in June, and we’re ramping. We probably built some things throughout the quarter, and given that we started in North America and that our goal is to maximize production with higher rates by the end of Q3, we’re going to keep pushing hard on our current models to avoid complexity. Then, fortunately, that rolls away. We’ll be running with the more affordable models available for everyone in Q4.”
The pricing of the affordable models still remains a mystery, and because the term “affordable” is subjective, we truly do not know what to expect. In the past, Musk has stated that the affordable models will cost under $30,000, including the tax credit.
With that being phased out, we are hoping to see a price around the $35,000 mark, especially since the least expensive Tesla, the Model 3 Long Range Rear-Wheel-Drive, is $42,490 before the tax credit.
The affordable models could be Tesla’s key to returning to annual growth, as in the past two years, it has delivered 1.8 million vehicles. The number of vehicle deliveries might not be as important as the company’s focus truly turns to autonomy and Robotaxi, but many investors will still look at this annual delivery figure as a sign of EV adoption and its potential trends moving forward.
Elon Musk
Tesla Supercharger Diner officially opens: menu, prices, features, and more
Tesla’s Supercharger Diner in Los Angeles is open after seven years in the making.
Tesla has officially opened its Supercharger Diner in Los Angeles to the public for the first time. It is an 80-Supercharger lot with two movie screens and a full-service 24/7 diner that serves a wide variety of locally sourced food for patrons while they charge or even just stop by.
It is not exclusive to Tesla owners, as anyone can stop by to experience the Diner and movie theater. It officially opened to the public at 4:20 p.m. local time.
🚨 The Tesla Supercharger Diner, as of 4:20pm local time, is officially open to the public!
— TESLARATI (@Teslarati) July 21, 2025
In 2018, CEO Elon Musk said he was hoping to build a full-scale 50s era diner that served as a drive-in movie theater. Seven years later, it has officially come to life, and in typical Tesla fashion, it opened at a very appropriate time of day. We heard of people waiting as many as 13 hours for the site to open.
Tesla Diner Menu
BURGERS & SANDWICHES
- Tesla Burger: $13.5
- 1/3 lb. prime Brandt Beef with New School American cheese, lettuce, caramelized onions, pickles and Electric Sauce on a Martin’s Potato Roll
- Add bacon: $3
- Add Wagyu beef chili: $3
- Add organic free-range fried egg: $2
- Sub veggie patty
- Hot Dog: $13
- All-beef Snap-o-Razzo hot dog with mustard and onion pickle relish on a Martin’s Potato Roll. Served with fried potatoes
- Add New School cheese sauce: $1
- Add Wagyu beef chili: $1
- Diner Club Sandwich: $13
- Roasted turkey, Epio Bacon, blistered cherry tomatoes, lettuce, avocado and maple black pepper mayo on toasted Tartine buttermilk bread
- Tuna Melt: $14
- Wild-caught albacore tuna salad with New School American cheese and pickles on grilled Tartine buttermilk bread
- Fried Chicken & Waffles: $15
- Classic or spicy pickle-brined organic free-range chicken between two buttermilk waffles with maple black pepper mayo
- Add New School cheese sauce: $1
- Add bacon: $2
- Add organic free-range fried egg: $3
- Sub Martin’s Potato Roll
- Grilled Cheese: $9
- New School American cheese on grilled Tartine buttermilk bread
- Add blistered tomatoes: $1
- Add Avocado: $1.50
- Add Epic Bacon: $3
ALL-DAY BREAKFAST
- Egg Sandwich: $12
- Two organic free-range scrambled eggs on a Martin’s Potato Roll with Epic Bacon, New School American cheese, baby arugula and Electric Sauce
- Add avocado: $1.50
- Substitute waffle Avocado Toast: $11
- Sliced avocado, lime, tomatoes, pepitas, radish and arugula on toasted Tartine buttermilk bread
- Greek Yogurt Parfait: $9
- Strauss Creamery organic Greek yogurt, roasted strawberries, organic gluten-free granola and local honey
- Breakfast Tacos: $9
- Organic free-range scrambled eggs, beef chorizo, crispy potatoes and New School American cheese sauce folded inside two Tehachapi Grain Project organic flour tortillas. Served with a side of avocado crema
- Sub bacon: $1
- Add avocado: $1.50 Biscuits & Red Gravy: $15
- Buttermilk biscuit with beef chorizo gravy and an organic free-range fried egg
- House-Baked Cinnamon Roll: $7
- Warm, frosted cinnamon roll with flaky salt
SIDES
- Tallow-fried French fries: $4
- Make it a cheese fries: $1 extra
- Make it Wagyu chili cheese fries: $3 extra
- Hash Brown Bites: $8
- Crispy, tallow-fried shredded potatoes served with choice of dip
- Wagyu Beef Chili Cup: $8
- RC Provisons Wagyu beef chili with diced white onion and New School American cheese sauce
- Buttermilk Waffle: $5 • Dusted with powdered sugar, served with real maple syrup
- Market Salad: $10
- Market kale and arugula, blistered cherry tomatoes, radishes, celery, shredded carrots, avocado, salted pepitas and toasted breadcrumbs.
- Served with Dilly Ranch
- Add roasted turkey: $3
- Add fried chicken: $3.50
- Add veggie patty: $4.50
- Add tuna salad: $5
- Epic Bacon:
- $12 Four strips of maple-glazed black pepper bacon served with choice of dip
KIDS MENU
- Kids Burger: $13
- Prime Brandt Beef with New School American cheese
- Kids’ Grilled Cheese: $13
- New School American cheese on grilled Tartine buttermilk bread. No crust
- Chicken Tenders: $13
- Made with organic free-range chicken
DESSERTS
- Soft Serve: $6
- Chocolate, vanilla or swirl
- Slice of Pie à la Mode: $12
- Warm slice of Winston’s apple or pecan pie (gf) served with Valley Ford Creamery softserve a la mode
- Chocolate Chip Cookie: $5
- Warm chocolate chip cookie with flaky sea salt
DRINKS
- Cane sugar sodas: $4 each: Cola, diet cola, lemon-lime, root beer, orange, black cherry or cream.
- Milkshakes $8
- Vanilla, chocolate or strawberry. Make it a Pie Shake for an extra $4
- (apple or pecan).
- Lemonade: $4
- Organic Draft Kombucha: $8
- Drip Coffee: $4
- Nitro Cold Brew: $4.5
- Espresso (hot, iced, decaf): $4
- Cappuccino (hot, iced, decaf): $5.5
- Latte (hot, iced, decaf): $6
- Iced Nitro Matcha: $6.5
- Charged Sodas:
- Creamsicle: $7
- Orange soda, cream soda, vanilla foam, fresh orange and orange popping boba
- Shirley Temple: $7
- Lemon-lime soda, grenadine, fresh lime and maraschino cherries
- Lime Rickey: $7
- Lemon-lime soda and fresh lime
- Catawba Flip: $7
- Grape soda, vanilla foam, nutmeg and grapes
- Dirty Kombucha: $10
- Citrus kombucha, vanilla foam, fresh orange and lime, maraschino cherries.
- Creamsicle: $7
Tesla Diner Details
The opening of the Diner was launched by Franz von Holzhausen, Tesla’s Chief Designer:
🚨 Tesla Chief Designer Franz von Holzhausen kicks off the Tesla Diner’s opening to the public: pic.twitter.com/c4utYKv1ZD
— TESLARATI (@Teslarati) July 21, 2025
There is also merchandise available at the Diner, including:
- Tesla Bot Action Figure
- Hollywood Retro Diner Tee
- Tesla Sweets | Supercharged Gummies: Dog Mode Chill, Mango Bolt, and CyberBerry
- Tesla Diner Trucker Hat
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