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 confirms Tesla is already rolling out a new feature for in-car Grok
Tesla is already making in-car Grok more robust with a simple but effective feature that CEO Elon Musk says is “coming.”

Tesla CEO Elon Musk has confirmed that the company will roll out a new feature for in-car Grok as it is rolling out to vehicles for the first time.
Grok was just recently added as a feature to Tesla vehicles within the past week, but owners are already requesting some small changes to make it more convenient to use.
Tesla debuts hands-free Grok AI with update 2025.26: What you need to know
The first is already on the way, Musk confirmed, as WholeMarsBlog requested a simple, but useful feature for Grok as it is used within Tesla vehicles.
Whole Mars requested that “Hey Grok” be used as a wake word, automatically activating the AI assistant without having to touch any buttons. Musk confirmed it is already in development and on the way to vehicles:
Coming
— Elon Musk (@elonmusk) July 16, 2025
This feature is incredibly similar to that of “Hey Siri” with iPhones and other iOS devices. The phone will recognize your voice and hear that prompt, automatically activating Siri. Apple’s assistant will then perform whatever task it is asked to perform. It’s a simple but effective performance feature.
Grok is already getting its first reviews from owners as it rolls out to owners for the first time. It is a long time coming, too. Tesla has been hinting that Grok would be enabled in the vehicles for a while now, and it just started its initial rollout last week.
After using @grok in my Tesla tonight, I’m insanely impressed.
I honestly went into it a bit skeptical on how useful it would actually be, but I asked it some real genuine questions and it nailed it every time.
Asked it if I take my Tesla to San Francisco next week, where… pic.twitter.com/R0QrK347vi
— Zack (@BLKMDL3) July 16, 2025
Hey @Tesla_Optimus … @grok wants to know if you’re free tonight pic.twitter.com/xXfSkg8M22
— Tesla (@Tesla) July 12, 2025
Grok is available in vehicles with the AMD chip and requires Premium Connectivity or a WiFi connection to use.
Elon Musk
Tesla reveals key detail of Supercharger Diner, but it’s bigger than you think
Tesla has finally released one key detail about the Supercharger Diner, and it is bigger than what it appears at face-value.

Tesla has revealed a key detail of its Supercharger Diner as its launch date appears to be nearing, based on what we are seeing at the site currently.
The Supercharger Diner is located on Santa Monica Boulevard in Los Angeles and was first proposed as an idea by CEO Elon Musk back in 2018. Musk envisioned a drive-in movie-style 1950s-inspired diner that would feature elements such as servers on roller skates, large movie screens, and a menu inspired by classic treats from several decades ago.
A project that first broke ground in 2023, the Supercharger Diner has been in development for over two years, as Tesla performed demolition work at the site back in February of that year.
It has slowly moved forward, and drone footage shot this week seems to show things are nearly up and running. Musk even mentioned that he had eaten at the Diner Supercharger this week.
There are still details that Tesla has yet to announce and confirm. The most important thing is regarding the menu that will be served at the diner.
Tesla has not hinted at what it will be making for patrons at the restaurant, but Musk commended the food and said the diner would be one of the coolest spots in LA.
🚨 Tesla has involved “almost every team at the company…in some form” in the development of the Supercharger Diner in Los Angeles https://t.co/wLC6t79vgu pic.twitter.com/o52SWWbYPd
— TESLARATI (@Teslarati) July 16, 2025
However, we now have details on another important thing about the restaurant: the hours.
Images taken by Aaron Cash of ABetterTheater.com show the diner will be open 24/7, as it appears on the front doors of the diner:
🚨 Tesla Diner in Los Angeles will be open 24/7 https://t.co/SlccUUlLIb pic.twitter.com/9I78ZGBdnz
— TESLARATI (@Teslarati) July 15, 2025
At first thought, it seems this will operate like any other diner, as many are open for 24 hours a day. Diners typically serve large menus with numerous options, catering to the tastes and moods of anyone who walks in.
People of all walks of life eat at diners, as the food is typically affordable, tasty, and available at any hour to serve those who are night owls or those who work non-typical schedules.
However, Tesla is a bit different, and it seems that this new venture into food service could eventually transition from human servers and cooks to robots, most notably the company’s in-house project of Optimus.
It is something straight out of a Star Wars movie. I can think of Obi-Wan Kenobi visiting Dex in his diner in Attack of the Clones to figure out where a poison dart was sourced from:
Eventually, Optimus will likely be working as an employee in the Tesla Diner, and 24/7 operation will be performed by the humanoid robot that aims to eliminate trivial tasks from humans.

Elon Musk’s artificial intelligence startup, xAI, just posted what could very well be the nerdiest job opening of all time. As can be seen in the Careers section of xAI’s official website, the AI startup and Grok creator is seeking a Fullstack Engineer for its “Waifus” project.
Anime fans, rejoice.
xAI’s Companions take the internet by storm
Earlier this week, xAI launched its Companions feature for its SuperGrok users, but the company eventually opened access to the new feature to all Grok iOS app users. xAI has released two companions so far: Ani, an overly attached anime goth girl seemingly inspired by the character Misa Amane from Death Note, and Rudi, a talking red panda that becomes more and more unhinged if he gets toggled to “Bad Rudi.” A third companion that looks like a male anime character is also listed as coming soon.
Ani, in particular, has become a massive hit online. Her natural, playful, and flirtatious interactions have proven popular among users across the globe, so much so that there is now fan art of the character being shared by users on social media. This has inspired the joke that Elon Musk, who has openly admitted on X in the past that he is fond of the Death Note anime, had created an actual “waifu” through xAI.
More companions coming
Based on xAI’s job opening, it appears that the company is looking to release even more companions for its users. Ani and Rudi/Bad Rudi may just be the start, especially considering xAI’s growing ambition and raw computing power.
As per the job listing, engineers hired for the role will help build fast, scalable, and low-latency avatar experiences for Grok. The AI startup noted that the work will involve real-time media processing, performance optimization, and feature development across various platforms. Applicants are also expected to be highly proficient in Python, with bonus points for experience in Rust, WebSocket, and WebRTC protocols.
Fullstack Engineers for xAI’s Waifu project are expected to receive a salary of $180,000 to $440,000, plus equity, comprehensive medical, vision, and dental coverage, access to a 401(k) retirement plan, short & long-term disability insurance, life insurance, and various other discounts and perks.
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