Billionaire Elon Musk's electric car manufacturer Tesla has written a letter to the US government warning that Trump's trade tariffs could cause great damage to the car industry. It is considered interesting that Musk's company, which is running the efficiency department of President Donald Trump's administration, wrote such a letter.
According to the BBC, in the letter, which was not signed by anyone, Tesla stated that although the company is in favor of fair trade policies, other countries have retaliated with tariffs on American products, which will greatly affect American exporters. It is not known who wrote the letter under Tesla.
As a political ally of Trump, Musk has been vocal in favor of reducing the size of the federal workforce and business reforms . However, now he seems to want to protect himself and his company from possible difficulties caused by Trump's trade policies.
In recent days, Tesla's share price is constantly falling and consumers cover their Tesla vehicles by sticking stickers of other brands, and after they started protesting in front of the Tesla showroom, just a few days ago, President Trump himself bought a new Tesla for Musk's support . Tesla sent the letter to Trump on the same day Trump announced that he would buy a new Tesla, accusing the radical left of opposing it with the intention of harming a promising person like Musk who is trying to make America great.
Since the beginning of this year, Tesla's share price has fallen by 40 percent . Some people understand that the company's market and brand value is being damaged due to Musk's relationship with the Trump administration. Market analysts said that the doubt among buyers about being able to meet production targets and the decline in sales last year are the main reasons for the continued decline in Tesla's share price.
Trump's fiscal policies have also worried investors. Trump has imposed an additional 20 percent tariff on Chinese imports. In retaliation, Beijing has also decided to impose tariffs on certain goods, including cars. China is Tesla's second largest market after the US. The
letter mentions that Tesla is changing its supply chain and looking for local suppliers. The company believes that it is going to adopt such a strategy to reduce dependence on foreign markets for cars and batteries. "But even if the supply chain is aggressively confined to the US, it is difficult or impossible to get some of the materials and equipment needed to make cars inside the US," the letter said.
