Tesla Will Dodge Car Tariffs
Because of where Tesla cars are assembled and their parts are sourced, they will dodge almost every tariff the Trump Administration has put forward.
According to a new Insurify study, “Among carmakers with multiple new models, new Buicks and Hyundais would see the highest average tariff-related increase in sales price, at 22%, followed by Kias at 21%. Tesla (5%) and Jeep (6%) would see the lowest average increase in sales price.”
Tesla could use the help. Slow sales pushed its US market share for EVs below 50% in the first quarter, a record low.Â
Tesla has to deal with the fallout of CEO Elon Musk’s relationship with President Trump and plans to cut several jobs and popular government programs. The company’s models are old, and it is not likely that any will be replaced or added to the fleet.
New Incentive Prices
Tesla has already begun offering incentives to attract customers back. Its new financial program for Model Y buyers is 1.99% APR for up to 72 months.
Tesla’s Cybertruck sales have been slow. It has a backlog of 10,000, which would take months to clear, even if no more were manufactured this year.Â
Tesla’s sales could jump if it launched a $25,000 model. Elon Musk has said it will, but there is no clear schedule.
Tesla needs an edge. Its American manufacturing could give it one.
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