Tesla, the renowned electric vehicle manufacturer led by Elon Musk, has raised concerns over the potential repercussions of U.S. punitive tariffs on its business. In a letter submitted to U.S. Trade Representative Jamieson Greer, the company cautioned that previous tariff measures have already increased the cost of producing electric vehicles in the United States, posing risks to its global competitiveness.
The letter, which was uploaded to a government filing on March 11 by a Tesla attorney, was notably unsigned. In it, Tesla warns that an escalating trade war could further elevate production costs and trigger retaliatory tariffs from other nations, impacting the company’s international sales.
“Prior U.S. tariff measures have increased the production costs of U.S.-made Tesla vehicles,” the letter stated. “At the same time, they have made exporting these vehicles more expensive, diminishing the competitiveness of U.S. manufacturers in global markets.”
The document also highlights Musk’s status as a “special government employee,” emphasizing his close alignment with former President Donald Trump and his advocacy for government downsizing and automation. However, the letter underscores that Musk’s business interests do not always align with political strategies, particularly in relation to trade policies.
Tesla’s stock has experienced a significant decline in recent weeks, with Musk attributing part of the pressure to his involvement with the White House Office of Digital Economy (DOGE).
“Tesla supports a robust and comprehensive approach to assessing unfair trade practices while ensuring that U.S. companies are not inadvertently harmed,” the letter stated. The Financial Times was the first to report on the filing.
Unusual Nature of the Submission
It is notable that Tesla’s letter was unsigned, a practice the company has followed in previous submissions to regulatory authorities. Neither Tesla, Musk, nor the White House have responded to Business Insider’s requests for comment on the matter.
Context of the Filing: Meeting Between Trump and Musk
The submission coincided with a White House event on March 11, where Donald Trump and Elon Musk reportedly discussed Tesla’s latest vehicle models. During the event, Trump expressed his support for Musk and announced plans to purchase a Tesla. The discussion followed reports of vandalism at a Tesla dealership.
Broader Industry Concerns Over Tariffs
Tesla is not alone in its concerns over the potential economic impact of trade tariffs. Analysts at Barclays have warned that a proposed 25% levy on imports from Canada and Mexico could severely impact major U.S. automakers, including Ford, General Motors, and Stellantis, unless companies adjust pricing strategies or relocate production facilities.
Ford CEO Jim Farley also voiced apprehension in February, stating, “Let’s be honest—long-term, a 25% tariff on goods crossing the Mexican and Canadian borders would create an unprecedented disruption in the U.S. auto industry.”
Tesla, too, is likely to feel the effects, as the National Highway Traffic Safety Administration reported that 20–25% of the components for its 2025 model year vehicles originate from Mexico.
“There is significant uncertainty surrounding tariffs,” Tesla CFO Vaibhav Taneja noted in a January 29 earnings call. “Over the years, we have sought to localize our supply chain in each market, but we still rely on global components. Any new tariffs will inevitably impact our business and profitability.”
As the trade landscape evolves, Tesla and other U.S. automakers remain watchful of potential policy shifts that could reshape the industry’s economic framework.
