Part 4/6:
On the surface, the new tariffs may seem protective of American businesses, as Tesla’s CFO acknowledged during an earnings call. However, the intricacies of global trade suggest that the challenges posed by tariffs could outweigh any competitive advantages they might provide. The financial implications for Tesla could be compounded if these tariffs draw a line against potential competition from Chinese electric vehicle (EV) manufacturers—a market that has historically presented significant opportunities for growth for Tesla.