Posted on 17 Apr 2025
Tesla is reportedly halting plans to import components for its Cybercab and Semi electric trucks from China, likely delaying the launch of the models.
Citing an unnamed source “with direct knowledge,” Reuters reported Wednesday the US EV maker had planned to absorb the initial 34% tariff on Chinese goods. However, as total US tariffs on China imports now stand at 145%, that plan has been suspended.
The manufacturer was due to start receiving component shipments in “upcoming months,” the report claims. These would be crucial for the trial production of the two models in October and mass production in 2026, it adds.
The Cybercab is expected to be produced in Texas, while the Semi will be made in Nevada, Kallanish understands. Last year, the company said it would target the production of at least 2 million Cybercabs per year, which would likely involve production in more than one factory.
Chief executive Elon Musk previously said Tesla would not be unscathed amid the US government’s 25% auto tariffs, suggesting the company would still face “significant impact” despite having local EV production. While auto tariffs may not impact Tesla car imports, other levies do impact its components and parts supply chain.
Washington is currently investigating the need for 25% tariffs on copper, as well as processed critical minerals and other products that contain them. The latter would include oxides, metals, master alloys, semi-finished goods (anodes and cathodes) and final products (EVs and batteries). If such a tariff is implemented, it would replace the “reciprocal tariffs” the US imposed on global imports. Yet, it remains unclear whether Chinese goods would still face 145% tariffs, a reduced rate or even an exemption.
Since hiking duties on China, the US government has exempted reciprocal tariffs on a few China-made goods including computers, smartphones, and semiconductor manufacturing equipment. On Monday, President Donald Trump said he was considering a modification to the 25% tariffs on cars and auto parts imports from Mexico, Canada and other places.
Musk and other Tesla executives will host the company’s Q1 earnings call on 22 April. Currently, top investor questions for the call include the timing of the launch of the Cybercab and the Full Self-Driving (FSD) Unsupervised tech. Analysts are highly likely to question the extent of the impact that tariffs are having on the company.
Source:Kallanish
