CEO Tesla, Elon Musk, may believe in a driverless future, but even the $30,000 Cybercab he plans to build can’t escape a 145% import tariff. According to a new report from Reuters citing a source with direct knowledge of the issue, Tesla has quietly suspended its plans to import parts from China not only for the Robotaxi but also for the fully electric Semi. The reason? Unsurprisingly, it’s the tariff.
Tesla had been planning its import scheme for some time. The company was even ready to bear an additional 34% tariff originally imposed on Chinese goods. However, after President Donald Trump escalated the ongoing trade war by increasing duties to 145%, Tesla is now waving the white flag.
The move could disrupt Tesla’s plans to kick off mass production of the highly anticipated models, which CEO Elon Musk has touted to investors as a major innovation driving momentum for the US automaker. The company was scheduled to start receiving component shipments in the coming months with the goal of commencing trial production of both models in October and mass production in 2026, with the Cybercab to be produced in Texas and the Semi in Nevada.
It remains unclear whether Tesla indefinitely suspended the plans and is backing out or is just waiting to see if Trump will back down from the hefty tariffs in the coming weeks. Tesla was said to be looking to start receiving components for both vehicles in the coming months with the idea of trial production by the end of this year before ramping up to mass production in 2026.
Of course, we have heard about the Semi multiple times, and right now, the truck is more of a meme than a machine. Despite having a good relationship with the president, the two seem to differ on tariffs. This part-time CEO has flown close to the sun as he tried to bridge the gap between politics and automobiles—at least for a little while—and now Musk finds his company potentially becoming a casualty of his proximity to power.
Not to say Tesla (or Musk) didn’t see this coming. In fact, Tesla has gradually been sourcing more parts from North America as a contingency if such a situation arose. And now, as the consequences of Musk’s political activism come back home, Tesla faces a high tariff bill to keep sourcing parts from China that don’t have a domestic supply chain.
So, here Tesla stands. A Robotaxi in need of new part sources, a Semi still struggling to gain traction, and a modern era company model that relies on the same global supply chain as other struggling old-school automakers to strengthen it amid uncertain international trade policies.
Whether the Semi delay will be enough to shake investor confidence remains to be seen. However, the Cybercab could be something that gets investors excited—especially since Musk has been treating Tesla more like an autonomous company than a car company lately. Tesla’s quarterly earnings call is less than a week away, and it should be interesting to follow.
With the temporary halt of Model S and X sales in China, sluggish sales in its home country, and a 250% year-over-year increase in Tesla’s trade-in program, the upcoming earnings call should provide some clarity.
