Tesla, the electric car company founded by Elon Musk has expressed concerns about the potential negative impact of trade tariffs imposed by Donald Trump’s administration.
Even though Musk is a supporter of Trump, Tesla is concerned that if other countries retaliate with their own tariffs then US businesses could suffer more than expected.
As per multiple outlets, Tesla conveyed this concern in an unsigned letter to the US trade representative, stating that while the company supports fair trade, it worries that “US exporters were exposed to disproportionate impacts" if other countries retaliated to tariffs.
Interestingly, the letter was dated on the same day Trump held an event at the White House during which he publicly showed support for Musk by pledging to buy a Tesla.
However, it is unknown who at Tesla wrote the letter, as it was unsigned and it is also unclear if Elon Musk was aware of it.
Tesla’s stock price has fallen by 40% since the beginning of the year.
Some people believe that Musk’s association with Trump is damaging Tesla’s brand but market analysts argue that the stock drop is mainly due to concerns about Tesla’s ability to meet production targets and a decline in sales over the past year.
In the letter, Tesla stated that it is making changes to its supply chains by relying more on local suppliers for its cars and batteries.
This move is intended to reduce the company’s dependence on foreign suppliers.
