Hey, everybody. Welcome back to the Elon Musk Podcast. This is a show where we discuss the critical crossroads that shape SpaceX, Tesla X, The Boring Company, and Neuralink. I'm your host, Will Walden. Tesla CEO Elon Musk opposes President Biden's new tariff on Chinese electric vehicles. He wants no tariffs on E VS from China. During the Viva Tech conference in Paris, Musk expressed his surprise at the administration's decision and clarified that neither he nor Tesla had
requested these tariffs. Musk addressed CNBC's Karen So's question, saying neither Tesla nor I asked for these tariffs. In fact, I was surprised when they were announced. This comment came in response to the Biden administration's announcement of a 100% tariff on Chinese made electric vehicle imports to the US. The White House justified the tariff, stating it aims to curb the influx of inexpensive
Chinese EVs into the US market. According to the administration, Chinese government subsidies are enabling their companies to over produce cheap clean energy products, including solar panels and EVs, which surpass domestic demand and impact the market. Tesla has faced significant challenges this year, including an aging fleet, weakened consumer demand, and intensifying global competition, particularly from China.
In the first quarter, Tesla's revenue saw its steepest decline since 2012, with the stock price falling nearly 30% in 2024. Despite these challenges, Musk highlighted Tesla's ability to compete effectively in China without the need for tariffs or special support. Tesla competes quite well in the market in China with no tariffs and no deferential support, Musk said. I'm in favor of no tariffs. Musk also expressed his opposition to tax incentives for
electric vehicles. I'm in favor of no tariffs and no incentives for electric vehicles or for oil and gas. He stated. Reiterating his broader stance against market interventions, Musk's remarks come after he previously suggested that Chinese EV companies would dominate global markets if trade barriers were not established.
Frankly, I think if there are not trade barriers established, they will pretty much demolish most other companies in the world, he warned during a company earnings call in January. During the Viva Tech conference, Musk was asked about whether the 100% tariffs would enable him to introduce a lower priced car. However, a technical issue caused his line to cut out, leaving the audience waiting for several minutes before he could continue the discussion.
The White House's announcement of the 100% tariff on May 14th was aimed at countering what it described as China's unfair trade practices. This move is part of a broader strategy to protect the US market from being overwhelmed by cheaper China made electric vehicles. Tesla has experienced headwinds, particularly in China, the
world's largest EV market. In April, Tesla's sales in China dropped by 18% compared to the previous year, according to the China Passenger Car Association. Globally, the company reported its first year over year quarterly decline since 2020. In the first quarter of 2024, the competitive pressure from Chinese EV manufacturers has been increasing.
In the last quarter of 2023, Chinese automaker BYD temporarily overtook Tesla as the world's top seller of electric cars, highlighting the intense competition in the market. So Musk's recent comments on China tariffs represent a shift from his earlier position. In January, he advocated for trade barriers to prevent Chinese EV companies from dominating the US market, suggesting that without such measures, these companies could
overwhelm the competition. In April, Musk acknowledged the competitiveness of Chinese car companies. Chinese car companies are by far the most competitive, he said during a podcast with Norgus Bank Investment Management CEO Nikolai Tangen. They make great cars and they work very hard. Former Tesla board member Steve Wesley commented on Musk's divided focus, suggesting that the CE OS attention is spread too thin across his various
ventures. Wesley noted the need for Musk to concentrate more on Tesla, especially during critical times for the electric vehicle industry. So Wesley compared Musk's approach to that of Invidia CEO Jensen Huang, who is known for delivering consistent results through Focus leadership. He suggested that Musk could benefit from a similar level of concentration to help Tesla
navigate its challenges. So Wesley compared Musk's approach to that of Invidia CEO Jensen Huang, who is known for delivering consistent results through Focus leadership. He suggested that Musk could benefit from a similar level of concentration to help Tesla navigate its challenges. The distractions facing Musk, including staff layoffs and controversies over his pay, have contributed to to concerns about his ability to lead Tesla effectively.
Wesley noted that these issues have played a role in the company's recent setbacks. Wesley also predicted that Tesla might introduce a new $25,000 car by next year, despite no official confirmation or evidence from the company. He believes that such a model could become a significant success in the market. Tesla's recent financial performance has been disappointing, with the company reporting its largest quarterly revenue decline since 2012.
This comes amid a broader slowdown and increasing competition in the EV industry, compounded by the new trade tensions between the US and China. Musk's commitments to other ventures, such as SpaceX X, Neuralink, and the Boring Company, have further diverted his attention from Tesla. These multiple roles have raised questions about his ability to focus adequately on the company
during this pivotal period. The Biden administration's 100% tariff on Chinese electric vehicles represents a significant development in the ongoing trade dispute between the US and China. The move aims to protect the US market from the influx of subsidized, low cost Chinese EVs, which the administration argues are undermining fair competition. Hey, thank you so much for listening today. I really do appreciate your
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