Elon Musk says he doesn’t want 100% tariff on China-made electric vehicles
- Reference: 1716571512
- News link: https://www.theregister.co.uk/2024/05/24/elon_musk_china_tariffs/
- Source link:
The CEO voiced his opinion about the new 100 percent tariff on China-made EVs at the Viva Tech conference in Paris, according to the [1]Telegraph , which quoted him as saying: "Neither Tesla nor I asked for these tariffs, I was surprised when they were announced."
He reportedly added: "Things that inhibit freedom of exchange or distort the market are not good."
[2]
Previously, the import charge on Chinese EVs was 25 percent as set by the Trump administration.
[3]
[4]
[5]The increased electric car tariff was also accompanied by higher tariffs on semiconductors, batteries, and solar cells. Biden's White House has reasoned that the increased rates were needed in order to "[respond] to China's unfair trade practices."
Sherrod Brown, one of Ohio's two senators, also suggested [6]a blanket ban on Chinese EVs for the protection of both the American economy and national security.
[7]
Musk's statement distancing his company from US tariffs is curious, considering that Tesla would be one of the primary beneficiaries of the policy. Chinese car brands like BYD reportedly receive subsidies from the Chinese government, which allows Chinese EVs to be priced very competitively against models made by other companies.
However, the tech tycoon says that Tesla competes just fine without tariffs. "Tesla competes quite well in the market in China with no tariffs and no differential support, in general I'm in favor of no tariffs," he said.
Musk might not be advocating for removing tariffs simply because he believes in the free market and is proud of his company. If China responds to the new US tariffs with tariffs of its own, then it would certainly have a negative impact on Tesla's Chinese arm, which appears to sell just about as many cars as Tesla's US business does according to [8]figures from Bloomberg and China's Passenger Car Association. According to the newswire, 131,812 vehicles were made in Tesla's China factory in the first two months of 2024, with about half shipped locally. Having no or little to no tariffs at all in either country would probably be ideal for the American car company.
[9]UK PM Sunak calls election, leaving Brits cringing over memory of his Musk love-in
[10]NYC Comptroller and hedge funds urge Tesla shareholders to deny Musk $50B windfall
[11]FDA gives Neuralink 'a second shot' at human brain chip
[12]Tesla self-driving claims parked in court
Additionally, by publicly disavowing them, Musk is fostering a working relationship with the Chinese government. [13]He visited China last month to meet with its Premier, Li Qiang, and then signed [14]a deal with Baidu to get self-driving tech enabled in the Middle Kingdom. Speaking out against the tariffs certainly helps him stay on China's good side.
The Tesla chief appeared to take a different position a few months back. In January, during the [15]company's quarterly earnings call, Musk said : "Frankly, I think if there are not trade barriers established, they [Chinese electric car manufacturers] will pretty much demolish most other companies in the world."
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In the same call, Musk also reiterated a desire to do business with Chinese car firms, by licensing technologies like self-driving and giving them access to charging infrastructure. ®
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[1] https://www.telegraph.co.uk/business/2024/05/23/elon-musk-attacks-bidens-tariffs-on-chinese-electric-cars/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZlEOCeXUke1LxC6MDK6DPwAAAMQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZlEOCeXUke1LxC6MDK6DPwAAAMQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZlEOCeXUke1LxC6MDK6DPwAAAMQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/05/15/us_china_tariff_hikes/
[6] https://www.theregister.com/2024/04/15/china_ev_ban/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZlEOCeXUke1LxC6MDK6DPwAAAMQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.bloomberg.com/news/articles/2024-03-22/tesla-trims-output-of-cars-in-china-amid-slower-ev-sales-growth
[9] https://www.theregister.com/2024/05/23/uk_pm_sunak_calls_election/
[10] https://www.theregister.com/2024/05/21/letter_penned_by_nyc_comptroller/
[11] https://www.theregister.com/2024/05/20/neuralink_brain_fda/
[12] https://www.theregister.com/2024/05/16/tesla_selfdriving_lawsuit/
[13] https://www.theregister.com/2024/04/29/elon_musk_china_visit/
[14] https://www.theregister.com/2024/05/01/tesla_map_backtrack_baidu/
[15] https://www.theregister.com/2024/01/25/tesla_conference_call/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZlEOCeXUke1LxC6MDK6DPwAAAMQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
Not a surprise
Not the first time he's pushed the Party line is it?
Elon sold his soul to China when he signed the contracts to set up in Shanghai, and they've maintained a very firm grip on his balls ever since.
No Chinese cars presently for sale in the United States.
“The Biden administration reportedly will slap a 100% tariff on Chinese electric vehicle (EV) imports, except that [1]no Chinese cars presently are offered for sale in the United States.”
“If China wanted to retaliate against the new American tariffs, it has a target-rich environment. General Motors last year sold 2.1 million cars in China. In most years, GM sells more cars in China than in the United States.”
[2]U.S. Secretary of Transportation Pete Buttigieg On Why Tesla Was Excluded From White House EV Event (Aug 2021)
“if President Biden and his administration truly wanted to see EV sales rise, they would consider a federal law allowing companies such as Tesla, Rivian, and Bollinger to sell directly to their customers in every state.”
[1] https://asiatimes.com/2024/05/biden-slaps-tariffs-on-nonexistent-chinese-ev-imports/
[2] https://cleantechnica.com/2021/08/05/u-s-secretary-of-transportation-pete-buttigieg-on-why-tesla-was-excluded-from-white-house-ev-event/
Re: No Chinese cars presently for sale in the United States.
Chinese companies are setting up shop in Mexico hoping to sidestep the U.S. import tariffs.
BYD is claiming that its screwdriver operation in Mexico won't export EV's to the U.S. Is there anyone thick enough to believe this bullshit? At the very least they'll export to Canada.
Re: No Chinese cars presently for sale in the United States.
In order to get Mexican built "Chinese" EVs into the US, they would have to be certified by the manufacturer as meeting US emissions and safety standards. Anybody think that'll be easy? Odds are that there will always be something wrong with the paperwork One more form to fill out, one more certification, Wrong type of Sulfur Dioxide sensor used in the emissions testing, etc, etc, etc. (But, but, but, it's an EV. Sorry Senor ... Chang, is it?, EV or not you must still run the test).
I'm sure the Chinese are well aware of the situation. I'm guessing that they plan to sell their Mexican production in Latin America.
Re: No Chinese cars presently for sale in the United States.
One of the target vehicles for production in Mexico is a direct competitor to the Ford's top selling F150 trick. Its a plug-in hybrid that sells for a lot less than the Ford truck.
There's a lot of people on these boards who still think that Chinese vehicles are second-rate knockoffs that will immediately fall apart. I seem to recall we used to say the same thing about Japanese vehicles right up to the point where Japanese became the products to beat for quality, reliability and sheer value for money. China already makes a lot of components and even complete vehicles for western car companies so its only natural they'd eventually see their own product.
Re: No Chinese cars presently for sale in the United States.
The sale of U.S. cars in China doesn't mean much if they're planning to export ten times that amount to the U.S. and wiping out your industrial base.
Re: No Chinese cars presently for sale in the United States.
If you believe a word that the Orange Jesus says, there will be ZERO us auto workers inside 2 years 'When the Chinese Cars eat their lunch'.
Here is the current POTUS putting a tariff on Chinese made cars just to protect those USW members who have endorsed him for POTUS.
As for Elon, he takes his lead from TOJ (The orange Jesus) who is his political master. He hates it that thanks to these tariffs, he can't import Chinese made Tesla's into the USA which will naturally make him more $$$$$$$ which he needs to pay off the loans he took out to buy Twitter.
Musk is being played by Trump for a fool.
GM, VW and a few other makers would dearly love to sell cars that they make in the PRC. Again, this is purely for more profit.
Geely with its brands like PoleStar, and Volvo would love for zero tariffs.
Gotta keep that kowtow going, Musky boy is more than happy to kiss Chinese ass at the expense of all others so he can keep access to the slave labour and cheap materials produced by modern concentration camp victims. He bitched and complained incessantly at the COVID restrictions in all countries but China where he had exactly zero to say about theirs. Though the end of it is on the horizon now the Chinese no longer need him, as they switch to the home grown manufacturers. Too bad so sad for that slimy Nazi piece of shit it will be a good laugh when it all comes crashing down on him the sooner the better.
Of course he doesn't
He's worried China will increase tariffs on imports of US cars as tit-for-tat and Teslas will be effectively pushed out of China's market. He knows it would take years before China would be able to enter the US market so he doesn't want tariffs NOW, he wants to benefit from sales in China in the meantime but once Chinese EVs became a threat to domestic Tesla sales he'd be first in line to shout for tariffs on Chinese imports. If the big 3 have been hurt in the meantime, all the better as far as he's concerned.
As for the $7500 tax credit, he sure took a different tack in the past when that was all that kept Tesla from going bankrupt. Now that's he's achieved economies of scale, he wants to pull the rug out from under the competition before they can also reach economies of scale.
He's the sort of guy that would loudly demand he be provided a ladder to climb at someone else's expense, but once he reaches the top kick it over while others in the process in the climbing so he alone can be on top.
Re: Of course he doesn't
More Teslas are sold in NA than China. Perhaps he recognises that, if we really want to fight climate change, we need to get cheap EVs in the hands of the working classes, who far outnumber the well to do who can afford a Tesla. Personally, I cannot reconcile any government that professes to want to lower emissions slapping tariffs on EVs. Make them so cheap that people choose them irrespective of fast charging point costs.
Musk may be a prat but that doesn't make him automatically wrong.
Re: Of course he doesn't
If you put the millions of people who work in the US auto industry and related industries from parts to restaurants and bars around factories out of work, you're going to have much bigger problems than slowing improvements in climate change.
Climate change is important, but pretending it is the only thing that should matter for government policy is as ignorant as the people who pretend it shouldn't matter at all.
While the US objects to Chinese subsidies, Tesla has benefited greatly from US subsidies and tax breaks, which are only available for US made electric vehicles. Not entirely equivalent, but the US pretend their hands are entirely clean of market manipulation. And if the US really wants a policy shift to EVs, they should let China dump cheap EVs on the market to spur widespread adoption.
It's non-EV manufacturers who would stand to lose out to Chinese EVs, and honestly, they deserve to. The future is EVs, anybody not pivoting hard to them right now will be going out of business in 20 years, this trade barrier will only keep that from being shortened by a few years.
Hostage
Musk is essentially a Chinese "hostage" since he knows his company can be shuttered at any time by the Chinese authorities if ordered so by Xi Jingping. By towing the CCP line he hopes to get a stay of execution.
If the Cold War turns hot Tesla's Chinese arm would implode almost overnight. I'm not sure if the U.S. parent company would survive if this were to happen. Tesla's stock price would take a HUGE hit (50% or more) taking down the company in a matter of weeks.
"Things that inhibit freedom of exchange or distort the market are not good."
Like buying a load of cryptocurrency then broadcasting to everyone that you've bought some because it's really good, so all the Muskovites buy more and drive the value up, before you dump them all a few days later and pocket a nice little big profit?
"Neither Tesla nor I asked for these tariffs, I was surprised when they were announced."
Ego so big he thinks the world revolves around it.
"Everything that ever happens should only ever be judged on whether or not it's in my personal interest"
Elon in January: "If there are no trade barriers established, they will pretty much demolish most other car companies in the world."
Seems like he just switched positions because he can't be seen as on the same side as Biden.
How dare a mere President do something without consulting Musk? The very idea!!