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This week, Tesla boasted while the anxieties were running on prices on cars.
“BTW, Teslas is the most made American cars”, Tesla’s official account published on X on Sunday.
This is true, at least from a measure. The company has dominated the American manufacturing index of Car.com since 2021, on the basis of criteria including the assembly location, where the parts are manufactured, the origin of the engine, the origin of the transmission and the American manufacturing workforce.
“The manufacture of Tesla, both as the location of the final assembly and the components of the vehicles, is just as high (a score on the index) As you might be able to get a vehicle made in the United States, “Patrick Masterson, principal researcher at CARS.com, told CNN.
Tesla’s American produced cars could partially protect the company from new car rates, which, according to industry experts, will increase car prices for consumers. The 25%tariffs, which were announced on Wednesday, will affect all cars and car parts imported from April 3. Analysts argue that the electric vehicle manufacturer will be largely protected, unlike other American car manufacturers like General Motors, which has factories in Mexico.
But automotive manufacturing “is a complicated process, and no one will be immune to these prices,” said Masterson. Even cars made in the United States depend on Mexico and Canada parts, thanks to the free trade agreements.
Although Tesla produces 100% of its vehicles in the United States in its Texas and California factories in the United States, there is really no 100% “American” car-as Musk himself supported on Wednesday after the prices were announced.
“Important to note that Tesla is not unscathed here,” published Musk on X. “The price impact on Tesla is always significant.”
Tesla did not say publicly how her cars depend on international parts. A document from October 2024 from the National Highway Traffic Safety Administration shows that 20% to 25% of the components for all Tesla cars have been imported, although it is not specified from countries. Between 60% and 75% of the components were manufactured in the United States or Canada, according to the document.
Cars.com had no data on the place where the specific components are manufactured, but Masterson said that “the final assembly of Tesla, the country of origin of the engine, the country of origin of the battery” is all based in the United States.
And for the moment, at least, the automotive parts manufactured in the United States or Canada are grouped, as part of the American Automobile Labeling, even if Trump prices also target Canada.
“Tesla in particular is known to supply itself by a greater proportion of components installed on its vehicles built by the United States compared to other car manufacturers (foreign and domestic) producing vehicles in the United States,” said JP Morgan analysts in a note, which stressed that Tesla and its compatriot Ev Maker Rivian would be the least affected among carmakers.
However, Wolfe Research predicted a potential annual front wind of $ 1.6 billion for Tesla on Thursday, mainly due to the components of the car made in Mexico.
The prices give Tesla a boost in the competition of electric vehicles, especially among its American rivals – Ford, General Motors and Stellantis.
“In the segment of electric vehicles, prices are a fiercely anti-union tesla boon, which will benefit from the disarray of competitors (including the three large) which need time to rethink production strategies and re-dediction factories. All Cornell automotive research jobs, the Cornell University Research Research Professor, said email.
In another sign of a potential turnaround, Tesla’s scourge stock features a return, closing above Wednesday for the sixth consecutive day, although it was still plunged by the end of the week. Meanwhile, the actions of Stellantis, Ford and General Motors all dropped in exchanges after working hours after the prices announced on Wednesday.
While Tesla can feel a bump in the United States, her CEO, Elon Musk, still faces a thorough examination of her disproportionate role in the federal government as head of the Ministry of Effectiveness of the Government. Sales have dropped sharply in Europe and China due to an influx of competition, and even the Tesla market used is wading.
Chris Isidore and Vanessa Yurkevich of CNN contributed to this report.
