Here’s what Elon Musk mentioned about price lists and their attainable impact on Tesla

Elon Musk mentioned on Tuesday that he does not like top or unpredictable price lists, however any choice on what occurs with them “is entirely up to the president of the United States.”

Speaking on his corporate’s first-quarter income name, with tariff-related uncertainty swirling around the financial system, Musk mentioned Tesla is in a somewhat excellent place, in comparison to different U.S. automakers, as it has “localized supply chains” in North America, Europe and China.

Musk mentioned Tesla is the “least-affected car company with respect to tariffs at least in most respects.”

Tesla reported troubling quarterly income and gross sales on Tuesday, together with a 20% year-over-year drop in automobile earnings and a 71% plunge in internet source of revenue. The corporate additionally mentioned that it wasn’t offering any steerage for 2025 no less than till its second-quarter replace.

While Musk is one among President Donald Trump’s closest advisers, price lists are the only factor the place he is in part damaged with the management. He lately referred to as Peter Navarro, Trump’s best industry adviser, a “moron” and “dumber than a sack of bricks.”

On Tuesday’s name, then again, Musk mentioned, “If some country is doing something predatory with tariffs,” or “if a government is providing extreme financial support for a particular industry, then you have to do something to counteract that.”

Tesla’s inventory value has been hammered because the president floated his plan for fashionable price lists previous this month, and that used to be after the stocks plunged 36% within the first quarter, their worst efficiency for any duration since 2022.

Because Tesla manufactures automobiles that it sells within the U.S. locally, the corporate is not topic to Trump’s 25% tariff on imported automobiles. But Tesla counts on fabrics and provides from China, Mexico, Canada and in different places for production apparatus, automobile glass, published circuit forums, battery cells and different merchandise.

Musk mentioned he gives his recommendation to the president on price lists.

“He will listen to my advice. But then it’s up to him, of course, to make his decision,” Musk mentioned. “I’ve been on the record many times saying that I believe lower tariffs are generally a good idea.”

He added that he is an recommend for “predictable tariff structures,” in addition to “free trade and lower tariffs.”

Musk mentioned Tesla’s power industry faces an “outsized” affect from price lists as it resources lithium iron phosphate battery cells, utilized in his corporate’s automobiles, from China.

“We’re in the process of commissioning equipment for the local manufacturing of LFP battery cells in the U.S.,” he mentioned. But he mentioned the corporate can “only serve a fraction of our total installed capacity” with its native apparatus.

“We’ve also been working on securing additional supply chain from non-china based suppliers, but it will take time,” he mentioned.

Musk referred to as Tesla probably the most “vertically integrated car company” however mentioned that there are nonetheless a lot of portions and fabrics that come from different international locations. Even despite the fact that it is constructed a lithium refinery in Texas, “we’re not growing rubber trees and mining iron yet,” he mentioned.

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