{"id":270768,"date":"2025-03-31T14:32:27","date_gmt":"2025-03-31T14:32:27","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/31\/can-trumps-auto-tariffs-save-musks-tesla-from-byd-the-times-of-india\/"},"modified":"2025-03-31T14:32:27","modified_gmt":"2025-03-31T14:32:27","slug":"can-trumps-auto-tariffs-save-musks-tesla-from-byd-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/31\/can-trumps-auto-tariffs-save-musks-tesla-from-byd-the-times-of-india\/","title":{"rendered":"Can Trump\u2019s auto tariffs save Musk’s Tesla from BYD? – The Times of India"},"content":{"rendered":"
\"Can<\/div>


\n<\/p>\n

\n
\n
\n
\n
\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n
Trump said the US would begin collecting tariffs on autos on April 3.<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

US President Donald Trump<\/a>\u2019s sweeping 25% tariff on all imported vehicles and parts is a windfall for Elon Musk\u2019s Tesla \u2014 at least on American soil. But it may prove meaningless against the rising global threat posed by China\u2019s electric vehicle juggernaut, BYD.
Why it matters<\/span><\/p>\n

\n
    \n
  • Tariffs may not stop BYD\u2019s global takeover:<\/strong> Tesla may be protected in the US market, but China\u2019s BYD \u2014 now the world\u2019s top EV seller \u2014 is aggressively expanding into Europe, Southeast Asia, and Latin America, where Tesla is losing ground.<\/li>\n
  • Tesla\u2019s international brand is under siege:<\/strong> Elon Musk\u2019s close alignment with President Trump is fueling backlash abroad. From EU protests to Canadian subsidy cuts, Tesla is facing a reputational crisis that no tariff can fix.<\/li>\n
  • The China EV threat isn\u2019t theoretical <\/strong>\u2014 it\u2019s here: BYD\u2019s latest innovations, like 5-minute ultra-fast charging and advanced hybrids, are reshaping consumer expectations. Tesla is no longer the undisputed tech leader in the electric vehicle race.<\/li>\n
  • Trump\u2019s tariffs could backfire long-term:<\/strong> By disrupting the global EV supply chain \u2014 especially battery components from Japan and South Korea \u2014 the tariffs risk undermining the very infrastructure the US needs to compete with China.<\/li>\n
  • US consumers could take a financial hit:<\/strong> Goldman Sachs estimates the tariffs could raise car prices by $5,000 to $15,000. That narrows the price gap between Tesla EVs and cheaper gas-powered vehicles, threatening demand at home.<\/li>\n<\/ul>\n<\/div>\n

    The big picture<\/span>
    In the US, Tesla is now the least exposed major carmaker to Trump\u2019s new trade policy. The EV giant produces every car it sells in the US at massive factories in California and Texas. This domestic manufacturing footprint helps Musk sidestep the very tariffs that are clobbering rivals like GM, Toyota, and Hyundai, whose global supply chains cross numerous borders.
    But this insulation only applies inside the US. Tesla\u2019s real danger is coming from abroad, where BYD is moving ahead.
    In late 2024, BYD leapfrogged Tesla in global EV sales and revenue, crossing the $100 billion mark. Backed early on by Warren Buffett and powered by aggressive tech innovation, BYD now poses the clearest threat Musk has ever faced. The company unveiled a new EV charging system that delivers 400 kilometers of range in just five minutes \u2014 an innovation Tesla has yet to match.<\/p>\n

    \n
    \"BYD<\/div>\n<\/div>\n

    <\/p>\n

    \n
    \"BYD<\/div>\n<\/div>\n

    What they\u2019re saying<\/span>
    As per a report in Asia Times, Elon Musk saw it coming. In early 2024, he warned that without tariffs, Chinese EV makers would \u201cdemolish\u201d global rivals. \u201cChinese car companies are the most competitive car companies in the world,\u201d he told shareholders. \u201cIf there are no trade barriers established, they will pretty much demolish most other car companies in the world.\u201d
    “Tesla a relative beneficiary given 100% US production footprint, substantial US sourcing and with Model Y competing in a midsize crossover segment where close to 50% of vehicles could be subject to tariffs,\u201d TD Cowen\u2019s Itay Michaeli told Asia Times.
    Analysts are taking note. \u201cTesla is the least exposed auto giant,\u201d says CFRA Research\u2019s Garrett Nelson, citing the company\u2019s US-based production and sourcing. Deutsche Bank agrees: \u201cTesla and Ford appear to be the most shielded from tariff impacts,\u201d though Ford still faces risks from imported engines.
    But even as Tesla enjoys short-term protection, Musk\u2019s long-term problem is not going away \u2014 and it\u2019s not just BYD. Chinese EV startups like XPeng, Nio, and Zeekr are rising fast, especially in emerging markets where cost matters more than brand identity, the Asia Times report said.<\/p>\n

    \n

    Long term I think Tesla stock\u2019s going to do fine, so maybe it\u2019s a buying opportunity.<\/p>\n

    Elon Musk<\/p>\n<\/div>\n

    Between the lines<\/span>
    1. Tariffs hurt Tesla\u2019s rivals far more than Tesla<\/span>
    The 25% tariff is expected to raise car prices in the US by $5,000 to $15,000 depending on the model, according to Goldman Sachs. That\u2019s a sharp blow to companies like Hyundai and Toyota, which import a significant portion of their vehicles to the US despite also having American factories.
    General Motors is also in the tariff crosshairs. Roughly 40% of GM\u2019s US sales are from vehicles built in Mexico or Canada. GM also imports key models like the Equinox and Trax \u2014 meaning it will have to either absorb the cost or pass it to consumers.
    European brands, especially Germany\u2019s Volkswagen and Italy\u2019s Stellantis, are even more exposed. These companies were betting on US growth to offset slumping sales in China \u2014 and Trump\u2019s tariffs could derail that pivot.
    2. Tesla\u2019s political baggage is building<\/span>
    Musk\u2019s role as head of Trump\u2019s Department of Government Efficiency (DOGE) has sparked massive backlash. Protesters are now regularly demonstrating outside Tesla showrooms in the US and Europe, with signs comparing Musk to fascist leaders and labeling his vehicles \u201cSwasticars.\u201d
    \u201cHey, hey, ho, ho, Elon Musk has got to go!\u201d chanted several dozen protesters outside a Tesla showroom in Dublin, California\u2014roughly 35 miles east of San Francisco\u2014as a small group of Trump supporters stood across the street waving American flags, an AP report said.
    In nearby Berkeley, a larger crowd surrounded another Tesla location, chanting to the rhythm of drums. \u201cWe’re living in a fascist state,\u201d said Dennis Fagaly, a retired high school teacher from Oakland. \u201cAnd we need to stop this or we’ll lose our whole country and everything that is good about the United States.\u201d
    In February alone, Tesla registrations in the EU dropped 47%. In New York, lawmakers are pushing to divest state pension funds from Tesla stock. In Canada, several provinces have pulled Tesla from EV rebate programs.
    Tesla is in the middle of what one analyst called a \u201cbrand tornado crisis.\u201d \u201cThis continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get onto the other side of this dark chapter for Tesla,\u201d Wedbush Securities analyst Dan Ives wrote in a recent research note, said the AP report.
    Tesla constitutes a large part of Musk’s wealth. It’s the Tesla that helped Musk become the world’s wealthiest person. But Musk runs the risk of losing a part of his fortune due to his political activism. Even Musk has admitted, \u201cIt\u2019s costing me a lot to be in this job,\u201d referencing the blowback from his Trump alliance and his role at DOGE.<\/p>\n

    \n
    \"Musk<\/div>\n<\/div>\n

    3. China\u2019s EV rise isn\u2019t accidental<\/span>
    Trump may be loud about tariffs, but China has quietly mastered them for decades. As Michael Dunne explains, \u201cChina\u2019s love affair with tariffs\u2014quiet, almost clandestine\u2014has been going on for decades.\u201d Through a mix of heavy import taxes, limited licenses, and industrial policy, Beijing built an auto empire.
    In 2024, China produced 31 million vehicles \u2014 three times more than the US. Despite being the world’s largest auto market, it has never allowed car imports to exceed 6% of the domestic market.
    This fortress model is what allowed BYD and others to grow into global players. Now, they\u2019re scaling internationally \u2014 exactly as Tesla begins to stumble.
    What\u2019s next<\/span><\/p>\n

    \n
      \n
    • Global dominance is slipping from Musk\u2019s hands. Tesla is still a major force, but it\u2019s no longer the inevitable EV champion. With Chinese competitors innovating faster and scaling cheaper, Musk\u2019s global strategy needs a reboot.<\/li>\n
    • Trump\u2019s tariffs are a double-edged sword. While they buy Tesla time in the US, they risk dismantling the global non-China EV supply chain \u2014 which includes Korean and Japanese battery makers essential to Tesla\u2019s long-term competitiveness.<\/li>\n
    • BYD\u2019s global march continues. Consumers can\u2019t buy BYD vehicles in the US \u2014 yet. But elsewhere, they\u2019re exploding. BYD has nailed pricing, design, and infrastructure. <\/li>\n
    • Tesla\u2019s future isn\u2019t guaranteed. Protectionism may offer short-term relief, but it won\u2019t stop the global EV shift already underway. And in that race, China \u2014 not the US \u2014 is in the driver\u2019s seat.<\/li>\n
    • Trade policy can shape short-term winners. But the bigger game\u2014technological leadership, market share, and brand trust\u2014is still very much in play.<\/li>\n
    • And in that game, Tesla is not the only player anymore. It may not even be the favorite.<\/li>\n<\/ul>\n<\/div>\n

      (With inputs from agencies)<\/div>\n