Tesla (NASDAQ:TSLA) CEO Elon Musk said that he doesn’t support President Biden’s recent announcement of a tariff on Chinese-made electric vehicles.
“Neither Tesla nor I asked for these tariffs,” Musk said in response to a question from reporters during a question and answer session at the VivaTech conference here on Thursday. “In fact, I was surprised when they were announced.”
The Biden administration last week said it was placing a 100% tariff on Chinese-made electric vehicle imports to the U.S. in a bid to stop cheap Chinese EVs from flooding the U.S. market. The White House says Beijing’s subsidies are helping companies overproduce cheap clean energy products like solar panels and EVs that outpace domestic demand.
Tesla has been struggling this year due to an aging fleet of EVs, weaker consumer demand for its vehicles and increased global competition, most notably in China. Revenue slumped in the first quarter by the most since 2012, and the stock price is down almost 30% in 2024.
“Tesla competes quite well in the market in China with no tariffs and no deferential support,” Musk said on Thursday. “I’m in favor of no tariffs.”
Musk added that he doesn’t agree with tax incentives for EVs, either.
“I’m in favor of no tariffs and no incentives for electric vehicles, or for oil and gas,” the Tesla CEO said.
TSLA shares hiked $3.34, or 1.9%, to $177.08.
