Tesla CEO Elon Musk has expressed his aversion to high or unpredictable tariffs, while he acknowledged that all decisions regarding tariffs rest entirely with the U.S. President.
On Tuesday, CNBC reported that Musk made these remarks during Tesla’s first-quarter earnings call amid growing economic uncertainty due to tariffs. Tesla posted disappointing quarterly results, with revenue down 20% year-over-year and net profit falling 71%.
Musk argued that Tesla is less vulnerable to tariff impacts compared to other U.S. automakers, citing the company’s established local supply chains in North America, Europe, and China. He claimed that Tesla is the least affected car company concerning tariffs, at least in most respects.
Despite being one of President Donald Trump’s close associates, Musk has shown divergence on tariff issues. He recently criticized Trump’s trade advisor, Peter Navarro. However, Musk has indicated support for certain tariff measures, stating that if any country launches an economic attack through tariffs or excessively subsidizes a specific industry, a response is necessary.
Tesla’s stock price tumbled on the New York Stock Exchange following Trump’s announcement of broad tariff policies. The company’s shares dropped 36% in the first quarter of this year, marking its worst performance since 2022.
