During Tesla’s (NASDAQ: TSLA) Q1 2025 earnings call, CEO Elon Musk and the company’s Chief Financial Officer addressed the impact of President Trump’s auto tariffs on the business.
Tesla executives acknowledged that the new tariffs present some challenges, but they were quick to emphasize the company’s readiness to navigate potential disruptions.
One major concern for American automakers is supply chain disruption. On this topic, Musk highlighted that Tesla has been proactively localizing its supply chain for years—well before the beginning of Trump’s second term. This long-term strategy has positioned Tesla to better manage tariff-related risks.
“We are, I believe, the least affected car company when it comes to tariffs—at least in most areas,” Musk explained. “That said, tariffs are still tough on companies with slim margins. But thanks to our localized supply chains in North America, Europe, and China, we’re in a stronger position than any of our competitors.”
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