Tesla’s domestically produced vehicles to be less affected by automotive tariffs
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A display of Tesla vehicles, including a Tesla Model Y, is seen at a showroom in Kennesaw, Georgia as shown in a photo by Mike Stewart/AP.

Tesla recently emphasized the American origins of their vehicles amidst concerns about tariffs on cars. The official Tesla account asserted on a social media platform that Tesla cars are the most American-made cars available. This claim is supported by Cars.com's American-Made Index, which Tesla has dominated since 2021. The index considers factors such as where the assembly takes place, the origin of parts, engine, transmission, and the US manufacturing workforce.

According to Patrick Masterson, the lead researcher for Cars.com, Tesla's manufacturing processes, including final assembly location and vehicle components, score very high on the index for a US-made vehicle. While other automakers like General Motors might be impacted by the new auto tariffs set to take effect on April 3, Tesla's American-made cars could offer some protection.

However, Masterson noted that the impact of tariffs on the auto industry will affect all car manufacturers, as the process involves components sourced from different countries, including Mexico and Canada. Despite Tesla producing all its vehicles in the US, CEO Elon Musk acknowledged that the company will still feel the effects of the tariffs.

While the exact percentage of international parts in Tesla cars remains undisclosed, data from the National Highway Traffic Safety Administration indicates that a portion of components is imported, with the majority being sourced from the US or Canada. Although specific information on the origin of components is unavailable, Masterson highlighted that Tesla's final assembly, engine origin, and battery origin are all in the US.

JP Morgan analysts pointed out that Tesla and Rivian, as electric vehicle makers sourcing a higher proportion of components locally, are expected to be less impacted by the tariffs compared to other manufacturers, foreign and domestic, operating in the US.

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