Trump’s Tariff Explosion Just Disrupted Tesla’s Cybercab and Semi Launch | Carscoops

      Tesla has reportedly halted its plans to import essential components from China, necessary for the mass production of the Cybercab robotaxi and the Semi truck.

      Although Tesla was prepared to handle a 34% tariff, the new 145% rate has led to a pause in shipments.

      The company's Cybercab robotaxi is crucial to its future, but the initiative has encountered a significant obstacle, reportedly due to President Trump's substantial tariffs on Chinese imports.

      According to sources, Tesla anticipated bringing components from China to the US in the upcoming months to facilitate trial production of both the Cybercab and the Semi truck, which has only been produced in limited quantities so far. The goal was to ramp up to full production by 2026.

      Tariffs Disrupt Plans

      While Trump's initial announcement of a 34% tariff was not favorable, reports indicate that Tesla was ready to withstand the financial impact. However, when the tariff on Chinese imports surged to 145%, Tesla decided to halt its plans.

      It remains uncertain how long Tesla will pause operations, as the duration of these substantial tariffs is unclear, even to Donald Trump. Earlier this week, the US President mentioned he might adjust the 25% tariff on auto parts imported from Canada, Mexico, and other areas, and recently announced an exemption for Chinese-made electronic devices like iPhones.

      Tesla’s Strategy for US Sourcing

      According to Reuters, Tesla has been increasing its domestic sourcing of parts over the past couple of years, anticipating potential tariffs. The timeline for switching suppliers and obtaining Cybercab and Semi components from US manufacturers is uncertain, and while we've inquired, we do not expect a response from Tesla.

      Last fall, Tesla unveiled the much-anticipated Cybercab, resembling a Honda CRX pod with scissor doors and lacking a steering wheel, while currently seeking approvals for the testing and operation of driverless vehicles in the US and other regions.