On May 24th, Tesla CEO Elon Musk stated that he does not support the recent decision by the United States to impose tariffs on electric vehicles manufactured in China.
During a Q&A session at the VivaTech conference in Paris on Thursday, Musk said, "Tesla and I did not request these tariffs to be imposed." "In fact, I was surprised when the news was announced."
Last week, the U.S. government announced a 100% tariff on electric vehicles imported from China, aiming to prevent low-cost Chinese electric cars from flooding the American market. The White House hyped that Beijing's subsidy policies have encouraged the production of cheap clean energy products beyond domestic demand, such as solar panels and electric vehicles.
This year, Tesla has been facing challenges due to aging electric vehicle models, weakening consumer demand, and increased competition globally, especially in China. The company's first-quarter revenue decline is the most severe since 2012, and its stock price has dropped nearly 30% since 2024.
Musk stated on Thursday, "Tesla competes well in the Chinese market without tariffs or incentives." "I support the elimination of all tariffs."
He also added that he does not support providing tax incentives for electric vehicles. "I am against imposing tariffs on electric vehicles, oil, and natural gas vehicles or providing any incentives."
Previously, Musk predicted that without trade restrictions, Chinese electric vehicle companies would dominate other competitors in the global market. "To be frank, without trade barriers, they would almost certainly destroy most other car companies globally," Musk said during a January earnings call this year.
Interestingly, when asked if the 100% tariff policy provided an opportunity for him to introduce low-priced models in the market, Musk's communication suddenly cut off, leaving the audience waiting for several minutes before he came back online.
