Part 4/8:
Tesla, while not exempt from the impacts of these tariffs, operates under a different model compared to legacy automakers. Most of its essential components, including batteries and electric motors, are produced domestically. Lutz points out that Tesla's supply chain is designed to mitigate risks associated with tariffs due to regional proximity, thereby potentially preserving its competitive edge over traditional manufacturers. Tesla's operations can streamline high-dollar components to remain insulated from the jeopardizing effects of tariffs.