Tesla, SpaceX Warn Tariffs Could Harm US Innovation And Industry
Tesla Inc. (NASDAQ:TSLA) and SpaceX have both raised concerns about the tariffs, warning that retaliatory measures could harm their respective industries.
The companies, both led by Elon Musk, submitted letters to U.S. Trade Representative Jamison Greer urging consideration of the broader economic impacts when shaping trade strategies, CNBC reports.
What Happened: In its letter, Tesla warned that previous U.S. trade actions had increased costs for vehicles both in the domestic market and abroad, weakening the company’s competitiveness, ABC News reports. Meanwhile, SpaceX highlighted concerns that tariffs on key spacecraft components could disrupt production and add significant costs to future projects.
Both companies stressed that retaliatory tariffs imposed by China and Canada were placing additional strain on U.S. exporters.
Tesla's letter, as reported by ABC News, did not identify its author, and it’s unclear whether Musk personally influenced the communication. Musk has not publicly commented on the letters, though he has previously supported reduced government spending. The White House has yet to respond to Tesla and SpaceX’s concerns.
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Why It Matters: Concerns from Tesla and SpaceX emerge at a turbulent time for Musk's public image. Musk's growing political involvement, including his role in the Trump administration's Department of Government Efficiency, has faced skepticism.
According to a recent CNN/SSRS poll, 62% of respondents believe Musk lacks the necessary experience to influence government changes, while 53% expressed disapproval of his involvement.
This discontent has coincided with declining Tesla stock prices. Since the start of 2025, Tesla's valuation has fallen over 34%. The drop follows widespread concerns about Musk's dual focus on government work and corporate leadership. Critics argue that his involvement in political matters could further hinder investor confidence.
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