Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute Global Conference at the Beverly Hilton Hotel on May 6, 2024 in Beverly Hills, California.
Apu Gomez | Getty Images
Paris- Tesla Chief Executive Elon Musk said he does not support President Biden’s recent announcement of tariffs on Chinese-made electric vehicles.
“Neither Tesla nor I asked for these tariffs,” Musk said during a question and answer session at the VivaTech conference on Thursday. “I was actually surprised when they were announced.”
The Biden administration said last week that it would impose a 100% tariff on Chinese-made electric vehicles imported into the United States to prevent cheap Chinese electric vehicles from flooding the U.S. market. The White House says Beijing’s subsidies are helping companies overproduce cheap clean energy products such as solar panels and electric vehicles that exceed domestic demand.
Tesla has struggled this year as its electric vehicle fleet ages, consumer demand for its cars weakens and global competition intensifies, especially in China. Revenue in the first quarter saw the largest drop since 2012, and the stock price fell by nearly 30% in 2024.
“Tesla is competing pretty fiercely in the Chinese market without tariffs and without respectful support,” Musk said Thursday. “I’m in favor of no tariffs.”
It’s a shift for Musk, who said earlier this year that without trade restrictions, Chinese electric vehicle companies would crush rivals elsewhere.
“Frankly, I think if they don’t put up trade barriers, they’re going to pretty much destroy most other companies in the world,” Musk said on the company’s earnings call in January.
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