Tesla CEO Elon Musk says he favors ‘no tariffs’ on Chinese EVs

Tesla CEO Elon Musk says he favors ‘no tariffs’ on Chinese EVsPARIS— Tesla CEO Elon Musk opposes President Biden’s tariff on Chinese-made electric automobiles.

“Neither Tesla nor I asked for these tariffs,” Musk told CNBC’s Karen Tso during a question-and-answer session at the VivaTech conference on Thursday. “In fact, I was surprised when they were announced.”

The Biden administration said last week that it would impose a 100% tariff on Chinese-made electric vehicle imports to the United States in an effort to prevent inexpensive Chinese EVs from flooding the market. According to the White House, Beijing’s subsidies are causing enterprises to overproduce low-cost clean energy products such as solar panels and electric vehicles, outpacing domestic demand.

Tesla has struggled this year due to an outdated fleet of EVs, lower consumer demand for its vehicles, and more worldwide competition, particularly in China. Revenue fell to its lowest level since 2012 in the first quarter, and the stock price is expected to fall about 30% by 2024.

“Tesla competes quite well in the market in China with no tariffs and no deferential support,” Musk stated on Thursday. “I’m in favor of no tariffs.”

Musk went on to say that he opposes EV tax incentives.

“I’m in favor of no tariffs and no incentives for electric vehicles, or for oil and gas,” the boss of Tesla stated.

Musk’s words on Thursday come after he predicted earlier this year that Chinese EV companies will destroy competition elsewhere in the absence of trade barriers.

“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world,” Musk said during the company’s earnings call in January.

Earlier, when asked if Biden’s 100% tariffs would give him permission to bring a lower-cost automobile to market, Musk’s line dropped out, leaving the audience waiting for several minutes for him to return online.

Some people exited the dome, where the Q&A session was being livestreamed.