US President -elect Donald Trump and Eileon Musk watch the sixth test of the Spexx Starsp in Brunsville, Texas, on November 19, 2024.
Brandon Bell By Reuters
President Donald Trump carried a promise to slap the definitions of goods from many trade partners. ELON Musk’s Electric Electrical CEOs may feel some pain.
During the call of Tesla’s profits on Wednesday, the financial manager, Vibahaf Taniga, said that the company’s profitability may get a blow if the new administration is implementing the customs tariff.
“Over the years, we tried to localize our supply chain in every market, but we still rely on spare parts from all over the world for all our business,” Taniga said. He said that “imposing definitions” will have an impact on our works and profitability.
President Trump, who returned to the White House last week, weighs the definitions of China, Mexico and Canada in an attempt to protect American commercial interests.
The definitions were a common tool in the first Trump administration, and they were used on goods including solar panels, steel and aluminum. A major discussion point remained in the campaign path. The President described a 60 % tariff in China, and over the end of the weekend, Colombia threatened 25 % on the goods coming to the United States
Musk was the biggest supporter of Trump, pouring $ 277 million into his campaign and supporting other Republican candidates. Musk is now running the Ministry of Governmental efficiency (DOGE), and many analysts have speculated that his narrow relationship with the president can benefit his companies.
Tesla shares have increased by 55 % since Trump’s electoral victory in early November. The stock increased by another 4 % in the trading on Wednesday, although Tesla reported weaker profits and revenues than expected for a quarter.
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