Trump has denied Tesla the tax exemption

Trump has denied Tesla the tax exemption

Trump administration rejected the company Teslа exemption from withholding tax of 25% on some parts, which are made in China. This failure can cause a decrease in the production of electric cars and increase their value, leading to significant financial loss for the company.

Despite the fact that all of its electric cars Tesla produces in the USA, some components are still made in China. In particular, there is the “brain” of the Autopilot 3.0 technology, according to Techcrunch.

We will remind that in April, Tesla CEO Elon Musk introduced the system of a full autopilot Autopilot 3.0 and a special chip that will be equipped with all models of Tesla. It is the “brain” of the system, the company orders in Shanghai, the company Quanta Computer. The refusal of the White House to give exemption from the 25% tax will lead to the need of finding another manufacturer’s such an important component. In turn, this will lead to the postponement of the introduction of a new autopilot system in electric vehicles and, as a consequence, reduce their security.

“The new rates or force us to seek a new supplier, or to increase the cost to the final consumer, or to reduce operating costs as part of our internal activities. Unfortunately, Tesla was unable to find a U.S. manufacturer who has the necessary experience for the production of the autopilot with the desired characteristics, in the required amount and at the right time,” said Elon Musk.