Tesla gets more than 20% of its parts from Mexico, as well as some from Canada on top of it. So, yes, Tesla will be negatively affected by the tariffs.
However, there’s another one-month delay.
I didn’t think I would have to write this article, but I have seen plenty of “Tesla influencers” claim that Tesla would not be affected by President Trump’s current trade war:
This is false. Tesla gets a significant percentage of its car parts from Mexico and Canada.
NHTSA releases data about the sourcing of parts for all vehicles in the US. Unfortunately, it doesn’t account for the US and Canada together, but it also lists the country of origin for the next largest source of parts.
For Tesla, that’s Mexico for all car models:
| Models | US/Canada | Mexico |
| Model 3 LR AWD/RWD | 75% | 20% |
| Model 3 Performance | 70% | 20% |
| Model Y LR AWD/RWD | 70% | 25% |
| Model Y Performance | 70% | 20% |
| Cybertruck | 65% | 25% |
| Model S | 65% | 20% |
| Model X | 60% | 25% |
This means that Tesl
7 Comments
chairmansteve
It will get a waiver.
rpmisms
OK, but how will they be affected relative to other car companies?
CottonMcKnight
"The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defence and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States…"
If the Line Item Veto was unconstitutional, then Congress surrendering its power to the President to not only impose tariffs unilaterally but then to _exempt_ favored parties from them, is not only blatantly corrupt, but clearly also unconstitutional.
But I'm not holding my breath for sanity from the Originalist Court.
refactor_master
Would Musk/Tesla theoretically have money enough to just eat the losses themselves for the first 6 months or so, and then secretly jack up the prices with a dumb excuse attached, when Trumpists have forgotten about the possibly that tariffs could backfire?
whoitwas
Why are we attacking our allies like this? What have Mexico and Canada done? Or Greenland, Panama, the EU? Why are we aligned with Russia over our allies? Who benefits from this?
johnea
I'm sure Elon is horrified.
Imagine if he lost a $100B and was only worth $1/4T?
How would he even get by?
fastball
Slightly tangential to the article itself, but quite relevant to the overall vibe of this comment section (and others like it): it seems like a large percentage of the HN community genuinely thinks that we should always do whatever is best for ourselves personally when it comes to politics.
"Voting against their own interests" has been a common refrain around here for the last months/years, usually in reference to Trump supporters and usually in reference to economic interests, as if your own personal economic benefit is the only thing that matters when in the voting booth.
Maybe some people believe in more than just their own economic self-interest? In fact, Benjamin Franklin once said that "When the people find that they can vote themselves money, that will herald the end of the republic." And yet I feel like there are many commenters around here who are effectively encouraging everyone to do that, and/or gleefully experiencing schadenfreude when people don't do that.
Now that I have articulated this though, I realize maybe a community built around a startup accelerator is exactly the place you'd find people that fixate on economic self-interest.