Tesla concerned about foreign retaliation against U.S. car manufacture
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On Friday, March 14th, Tesla sent a letter to U.S. Trade Representative's office, Jamieson Greer, stating that, while understanding efforts made to ensure fair trade, it is essential for the Trump administration to consider potential repercussions of U.S. trade policy on companies that export from the United States, especially car manufacturers.
In recent weeks, U.S. Department of Commerce launched a public consultation to discuss trade measures in order to address any unfair trade practices.
Tesla's letter comes at a difficult time, as new tariffs could hinder components' procurement for building electric vehicles, such as lithium batteries. The company recommends a more gradual approach from U.S. government, one that allows automakers to adjust to the new trade framework. Furthermore, some countermeasures taken by foreign countries affected by U.S. tariffs involve additional taxes on electric vehicles, which impacts half of Tesla's revenue, which comes from overseas sales.
Meanwhile, Tesla's sales are plummeting: European Automobile Manufacturers Association reports that in January alone, Tesla lost 45% of its sales in Europe, with a 70% drop in Germany. In China, shipments fell by 49% in February. Tesla's stock has also decreased, losing more than 40% since the beginning of the year.
In recent weeks, U.S. Department of Commerce launched a public consultation to discuss trade measures in order to address any unfair trade practices.
Tesla's letter comes at a difficult time, as new tariffs could hinder components' procurement for building electric vehicles, such as lithium batteries. The company recommends a more gradual approach from U.S. government, one that allows automakers to adjust to the new trade framework. Furthermore, some countermeasures taken by foreign countries affected by U.S. tariffs involve additional taxes on electric vehicles, which impacts half of Tesla's revenue, which comes from overseas sales.
Meanwhile, Tesla's sales are plummeting: European Automobile Manufacturers Association reports that in January alone, Tesla lost 45% of its sales in Europe, with a 70% drop in Germany. In China, shipments fell by 49% in February. Tesla's stock has also decreased, losing more than 40% since the beginning of the year.