Tesla pens 'polite' letter to Trump admin. that tariffs are 'screwing over' Musk's company
President Donald Trump's tariffs will cause problems for Tesla, the company warned the Trump administration, according to the Financial Times.
The company expressed concern it will be targeted for retaliatory tariffs from other countries since its CEO is a special government employee and close advisor to the president, according to the report.
"In an unsigned letter addressed to U.S. trade representative Jamie Greer, Tesla said that it 'supports' fair trade but warned that U.S. exporters were 'exposed to disproportionate impacts when other countries respond to U.S. trade actions."
"For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries," the March 11 letter said.
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Several U.S. companies manufacture and sell electric vehicles outside of Tesla.
The letter emphasized that Tesla has been impacted by Trump's trade war, even though the CEO is close to Trump, The Financial Times said.
The European Union and Canada have threatened retaliation for tariffs on steel and aluminium imports into the U.S., which began earlier this week, the report recalled.
The report cited "one person familar with the process of sending the letter" explaining that the note is "a polite way to say that the bipolar tariff regime is screwing over Tesla." They also said that the letter went unsigned out of fear anyone willing to put their name on it would be fired.
Tesla has experienced a considerable stock loss over the past several weeks. One J.P. Morgan analyst wrote that it is so significant it might be historic, Business Insider reported Wednesday.
"We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly," they wrote.