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Interestingly, we see that batteries—specifically those critical to electric vehicle production—are not currently exempted. While Tesla manufactures some battery cells in the U.S., it still sources a considerable amount from China. The lack of battery exemptions raises concerns about the potential increase in production costs for Tesla.
Immediate vs. Long-Term Effects on Tesla
Tesla's operations may initially face some challenges due to these tariffs, particularly affecting its automotive and energy storage divisions. Reports indicate that Tesla’s mega packs, which are notably profitable, rely heavily on battery cells sourced from China.