Elon Musk’s Tesla has reportedly halted imports of car parts from China needed for its upcoming Cybercab and Semi electric truck because of the trade war with Beijing — throwing a wrench into the company’s much-touted plans.
The EV pioneer had planned to import components from China to support production of the two new vehicles – but the plans became untenable once tariffs surpassed 34%, Reuters reported, citing a source with direct knowledge.
The Trump administration imposed total tariffs of 145% on Chinese imports last week, prompting Beijing to retaliate with a 125% tax on US goods.
The president has said the tariffs are necessary to rebalance trade between the two nations.
It’s unclear how long the suspension of imports will last.
Musk has called the self-driving Cybercab – also referred to as Robotaxi – a key element of the company’s future growth.
The company had planned to begin initial production of Cybercab and Semi as soon as this October before ramping up mass production by 2026.
The Cybercab is slated to be produced as Tesla’s Gigafactory in Texas, while the Semi will be built at a plant in Nevada.
Tesla shares sank nearly 2% on Wednesday.
Company representatives did not immediately return a request for comment.
Tesla was seen as more insulated than other American auto brands because it builds all of the vehicles it sells in the US at US-based plants.
However, the company has major operations in China and remains reliant on the country for certain components used in its vehicles.
Any supply chain difficulties will make it more difficult to meet Musk’s ambitious goals for fully autonomous vehicles.
Tesla has been seeking approval from state and federal officials to facilitate a fleet of taxis.
As The Post has reported, Tesla also faces increasing competition from Chinese electric car brand BYD, which recently surpassed Musk’s company in global sales and is in the middle of a major international expansion.