Tesla CEO Elon Musk recently lobbied former President Donald Trump to reverse his proposed sweeping tariffs on imported goods, particularly those affecting electric vehicles (EVs) and critical minerals, but the appeal was dismissed, according to sources familiar with the matter.
The behind-the-scenes push, first reported by The Wall Street Journal on [Date], highlights growing tensions between Trump’s America-first trade agenda and corporate leaders fearing disruptions to global supply chains. Musk, whose Tesla relies heavily on Chinese battery components and European manufacturing partnerships, argued that the tariffs would stifle the U.S. transition to electric vehicles and raise costs for consumers.
Behind Closed Doors
Two sources confirmed that Musk contacted Trump directly in late June, urging him to reconsider plans for 60% tariffs on Chinese EVs and 10% universal levies. The Tesla chief warned that such measures would undermine Biden-era subsidies for domestic EV production while handing an advantage to European and Asian automakers.
Trump reportedly rebuffed the plea, reiterating his stance that tariffs are “non-negotiable tools” to pressure companies into relocating production to the U.S. “The President made it clear he won’t bow to corporate lobbyists. His priority is protecting auto workers in Michigan, not Silicon Valley billionaires,” a Trump campaign advisor said anonymously.
Industry Divide Widens
Musk’s outreach reflects deepening rifts within the automotive sector. Legacy U.S. automakers like Ford and GM have cautiously supported tariffs to limit competition from cheaper Chinese EVs. Tesla, however, imports lithium batteries from China and operates a major Shanghai Gigafactory, leaving it uniquely exposed.
“Tesla’s entire supply chain is global. These tariffs could erase their cost savings overnight,” said Rebecca Lin, an analyst at Bernstein Research. Shares of Tesla dipped 3% following the report, while traditional automakers saw modest gains.
Political Repercussions
The rejection underscores Trump’s hardened trade stance as he campaigns on a platform of economic nationalism. Democrats seized on the clash, with Sen. Elizabeth Warren tweeting: “Even Musk—a Trump ally—can’t stomach his destructive policies. These tariffs are a tax on the middle class.”
Musk, who has increasingly aligned with conservative causes, has not publicly commented. Sources say he may now focus on lobbying congressional Republicans to dilute tariff measures ahead of the election.
