Elon Musk's plans for the Tesla Cybercab and the Semi truck are now being halted by high tariffs on Chinese parts, putting production of the key models at risk.
Tesla's plans for the Cybercab and Semi truck are being affected by high tariffs. The US tariffs on goods from China are creating uncertainty. This applies to components for the two new models.
Production plans for the two vehicles are now being scrapped. Both models are seen as important to Tesla's future growth, and Elon Musk has highlighted them to investors.
Tesla originally planned to use parts from China. They were to be used in the production of both the Cybercab and the Semi.
It has now been put on hold, according to a source cited by Reuters .
The reason is the increased tariffs on Chinese goods. It was Donald Trump who introduced them. At first there was a tariff of 34 percent.
Tesla was initially prepared to pay the additional cost. But the trade war escalated and tariffs rose significantly, making the original plan impossible.
Tesla's production is affected by US tariff policy
Trump raised the additional tariffs to 84 percent on April 9. They have since increased to 125 percent. The total tariff on Chinese goods exported to the United States is now 145 percent.
Tesla was scheduled to receive components from China soon. The goal was to start trial production of the two models in October. Mass production was to begin in 2026.
The Cybercab model will be manufactured in Texas. The semi-truck will be produced at the Nevada factory.
It is unclear exactly how long the postponement will last. The uncertainty is affecting Tesla's future prospects.
Tesla has been working to increase the proportion of parts from North America. This has happened over the past two years for factories in the US. This was precisely in light of possible tariffs on goods from China.
The future of the Tesla Cybercab and Semi
Despite the efforts, factories are still dependent on parts made in China. The current situation highlights this dependence.
Reuters points out that the situation illustrates a potential consequence of Trump's tariff policy. The policy was intended to boost local production in the United States. However, it could now hit American companies and Trump's own supporters like Elon Musk.
Elon Musk has repeatedly expressed support for free trade. He has also spoken out against tariffs on the social media platform X.
According to the Washington Post, Musk recently asked Trump to reverse the new tariffs. It is unknown whether this will have any effect.
The trade war has also brought Chinese retaliation. China has imposed a 125 percent tariff on certain American goods. This has caused Tesla to stop taking new orders for the Model S and Model X in China.
The high tariffs therefore create significant challenges for Tesla, affecting both production and sales in important markets.
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