Tesla CEO Elon Musk expressed his disapproval of President Biden's tariffs on Chinese-made electric vehicle (EV) imports during a conference in Paris. Musk stated that Tesla thrives in China without the need for tariffs or special support. He emphasized his stance favoring a free-market approach.
At the VivaTech conference, Musk was asked about the new tariffs by CNBC’s Karen Tso. He clarified that neither he nor Tesla had requested these tariffs and was surprised by their implementation. The Biden administration recently imposed a 100% tariff on Chinese EV imports to prevent an influx of inexpensive Chinese EVs into the U.S. market. The White House cited Beijing's subsidies, which allegedly enable overproduction of cheap clean energy products, as a justification.
Tesla has faced challenges this year, including an aging vehicle lineup, reduced consumer demand, and intensified competition, especially from Chinese manufacturers. The company reported its largest revenue decline since 2012 in the first quarter, and its stock price has dropped nearly 30% in 2024.
Musk reiterated his opposition to both tariffs and tax incentives for EVs and fossil fuels, advocating for a level playing field without government intervention. He previously warned that without trade barriers, Chinese EV companies might dominate global markets, as mentioned during a January earnings call.
The Q&A session experienced technical difficulties, causing a delay and prompting some attendees to leave.
Musk’s comments highlight his preference for market-driven competition over regulatory measures.
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