While President Trump sets new tariffs for goods from China and threatens a trade war with allies such as Mexico and Canada, a global company should suffer less than most of its competitors: Tesla.
However, the electric car manufacturer led by Elon Musk, which is a third of the billionaire's assets, is also susceptible if relationships with China deteriorate. This country is the company's second largest market after the United States and produces more cars there than somewhere else.
Tesla has largely built up self -sufficient supply chains in the USA and China, a rarity in a world of interconnected trade. As a result, the tariffs raised by the Trump government for Chinese goods and the continued threat to put them on Mexican and Canadian products could help Tesla to violate its competitors more.
Although there is no evidence that Mr. Musk designs trading policy, the tariffs are one of several measures that were issued by the Trump administration that Tesla can benefit from at the expense of their competitors. On Wednesday, Mr. Trump held 25 percent tariffs for most cars and parts in Canada and Mexico, but the postponement runs out in a month and leaves car manufacturers in the USA that depend on foreign supply chains in a state of uncertainty.
The administration also tries to eliminate the financial support for the construction of faster charging stations for electric vehicles. And it tries to cut or eliminate loans and subsidies with which competitors such as Ford Motor and Rivian finance electric vehicle and battery tapes.
Mr. Musk said almost nothing about the trade or the government of the government to promote fossil fuels and to hinder the sale of electric vehicles, which could also harm Tesla. And his support from Mr. Trump inspired protests at Tesla dealers and burdened Tesla's share price. But his position as a DE FACTO member of Mr. Trump's cabinet gives him influence that exceeds any other car manager.
“Interest conflicts are very mild here,” said John Helveston, assistant professor at George Washington University, who teaches engineering management.
Tesla did not answer a request for comment. An official of the White House said that his policy was before Mr. Musk's support for Mr. Trump.
“President Trump has even confirmed the guidelines for the workplace of Biden on the campaign path on the campaign path on the campaign path on the campaign path-and he has consistently pushed for the President in 2015, said Kush Desai Haus, said in an email.
The trade war and other Trump guidelines are also risks for Tesla if the company is already in the crises, whereby sales in China and Europe, even if the overall market for electric vehicles, is increasing.
Mr. Musk's extensive investments in China make him vulnerable when the trade tensions between the Chinese government and the Trump government increase.
“He could be a farmer in all of this,” said Lei Xing, an independent auto analyst based in Massachusetts, which focuses on China.
Tesla is already fighting in Europe and China due to the competition by Chinese electrical manufacturers and the lack of new models. The anger of Mr. Musk's political activities, including the promotion of right -wing extremists, has also affected demand in Germany, the United States and other markets. Mr. Musk's personal assets are connected in Tesla shares, which has decreased sharply.
When Tesla began in a factory in a Foreign, California in 2012, with mass production of electric cars, it designed a supply chain that depends less on imports than practically all of its competitors. At that time, electric vehicles were a new technology that forced Tesla to largely develop its own sources for batteries, engines and other components.
In partnership with Panasonic of Japan, Tesla built a battery factory in Nevada and remains only a few of a few car companies to produce batteries in the USA.
When Mr. Musk spoke about the construction of a factory in China in 2014, he warmly welcomed government officials. Tesla opened a factory in Shanghai in Shanghai six years later under unusually favorable conditions. Beijing changed the property regulations so that the company could set up without a local partner, a premiere for a foreign car manufacturer in China. The Chinese government also provided low interest rates, access to top executives and even changes that Tesla had been looking for in the emission regulations.
But Mr. Musk held the supply chains for the Chinese and US factories relatively separate, in contrast to other automotive companies that depend heavily on imported parts.
“In the event that the trade is going sideways and the tariffs are higher,” said Michael Dunne, a long -time consultant for China Automotive. “And that serves him well today.”
Today the cars produced in Shanghai are sold in Europe, Southeast Asia or on the domestic Chinese market – but not in the United States.
The cars that Tesla sells in the USA are produced in Fabrics in Fremont and Austin, Texas. Tesla also produces chargers for its proprietary cargo network-the largest of the state-in Buffalo, NY Tesla, regularly leads an annual ranking of Cars.com, an online shopping site, through that of America.
“Tesla is in a good position” to withstand tariffs, said Patrick Masterson, who monitors the compilation of the data that goes into the cars.com ranking. “Your domestic production is robust.”
Tesla is still susceptible to tariffs for goods from China and Mexico, since a quarter of the components and materials measured according to value is imported according to the data compiled by the National Highway Traffic Safety Administration. But electric vehicles from Tesla's competitors are much more susceptible to tariffs.
For example, Mexico General Motors' Chevrolet Equinox Sport Utility Vehicle is produced. With a starting price of $ 34,000, the battery-operated Equinox is a threat to the Tesla model Y, which begins in front of government incentives at $ 45,000. The 25 percent tariff of the Trump administration will delete most of this advantage, provided it stands.
The risk of Tesla in China is more difficult to measure. So far, the Chinese leaders seem to be regarded the role of Mr. Musk in the Trump government as a plus and to consider it as a potential contact point. In January, when Han Zheng, China's Vice President, flew to Washington to take part in the inauguration of Mr. Trump, he met with Mr. Musk.
“US China policy has often operated through specific personal relationships,” said Ilaria Mazzocco, a senior scholarship holder in the Chinese economy and economy at the Center for Strategic and International Studies, a Think Tank in Washington. “In China there is hope that he could play a constructive role.”
But Mr. Musk has also lost some negotiation power in China.
When the Chinese leaders in the Shanghai factory were greenish, Tesla was seen as a technology leader who would boost the development of the EV industry. With the turnover in Europe and weakening in China, the Tesla production in Shanghai fell by 50 percent in February compared to the previous year. Chinese car manufacturers such as BYD and Xiaomi introduce new models that keep up with Tesla with autonomous driving with Tesla.
Tesla's prestige and levers in China can be reduced.
“Tesla can no longer control China,” said Jia Xinguang, an independent automotive analyst in Australia. “But China, on the other hand, can control Tesla.”
Nevertheless, China would probably think twice before she is aimed at Tesla and Mr. Musk because it could make it more difficult to put on foreign investments, said Wang Yanhang, scholarship holder at the Chongyang Institute for Financial Studies at Renmin University in Beijing. “China won't shoot her foot,” he said. “It's the last option.”
So far, China has kept away from cars when she has rewarded herself against the tariffs of the Trump government for Chinese goods, but increases the tasks for US agricultural products such as chicken and wheat.
Tesla fought at least one potential tariff for Chinese materials, which affects its competitiveness directly.
China is the main source for high -purity graphite, an essential material for batteries. In December, a group of companies that produce batteries in the USA, China to ask the U.S. International Commerce Commission to force punitive tasks that could be more than 800 percent.
At a hearing on this topic in January, Tesla hired a prominent law firm in Washington to argue their case, and four Tesla executives spoke according to public documents. Tesla “presses back because they see no alternative to the Chinese graphite,” said Iola Hughes, research manager at RHO Motion, who is pursuing the battery industry.
Last month, the trading agency announced that there is an “appropriate indication” that the Chinese exports of Graphit US producers harm. The agency did not make a final decision. Mr. Trump's rhetoric in the trade has not mentioned any mention of graphite.
Joy Dong contributed the reporting.