There’s been a few changes in the tariffs for Tesla lately.
Firstly we have the reduced import tariff of 9% (from 20.8%) on its China-built cars exported to the European Union after the bloc’s executive revised on Tuesday its proposed punitive duties on imports of Chinese-made electric vehicles. So, that’s a win right there. Other EV manufacturers did also receive a tariff cut, but not ones worth writing home about.
BYD: 17% from 17.4%
Geely: 19.3% from 19.9%
SAID: 36.3% from 37.6%
Secondly, and on the flip side we have some bad news from Canada. They are planning 100% levy on electric cars from China. Which on the face of it, is a pretty harsh blow to Tesla since it’s been importing a bunch of it’s Model 3 standard range cars from China lately. However, this is actually a bit of a win for Tesla in my opinion. Not only does this make it very hard for Chinese EV’s to enter the market there, Tesla can simply start importing from Fremont instead and avoid the tariff.
Source: Click here
Other Tesla updates: Insights from @HansCNelson but expanded.
• Tesla’s Shanghai Megapack Factory is 45% complete, expected to finish in 6-9 months, not bad since it began 3 months ago. Very excited to see this completed and capacity is set for 40GWH per year with a Rev of $10B. Love it. These packs will be for overseas markets and hopefully we see new factory announcements through 2025.
• Tesla Energy’s revenue has now exceeded its services and other revenue streams for the first time, marking a significant change in Tesla’s revenue structure. I have been waiting for this! It’s one of the areas I’m most excited about.
• Trump has offered Elon Musk a potential advisory role, even though he opposes EV tax credits, showing mixed feelings about EVs and Elon hinted he would be happy to serve. As usual he brings his sense of humour and suggests that he would work for a potential government commission to reign in spending. The idea of leading a possible Department of Government Efficiency aka DOGE!
Trump has recently told Reuters that “tax credits and tax incentives are not generally a very good thing,” although he noted that he was not making “any final decisions on it.” While doing away with the federal tax credit could hamper EV adoption rates and sales for automakers, Musk has expressed his support for removing all subsidies on the auto industry. During a recent earnings call, he said doing away with the IRA tax credits “probably actually helps Tesla” in the long term because it would hurt rivals. We shall have to wait and see how this one unravels but it’s likely to push more customers to Tesla as other companies halt production.
• Other government tax credits could potentially benefit Tesla by up to $41 billion by 2032, supporting battery production incentives vital for EV growth.
