Tesla to resume shipping Chinese parts for Cybercab, Semi production in the US: source
[SHANGHAI] Tesla plans to start shipping components from China to the US for the production of Cybercab and Semi trucks from the end of this month, after the US and China reached a truce over tariffs, said a source with direct knowledge.
The move, being reported by Reuters for the first time, illustrates how the de-escalation of the trade war between the world's two largest economies, following talks in Geneva over the weekend, is having an immediate impact on business activity.
Reuters reported last month that Tesla had suspended plans to ship the components after US President Donald Trump raised tariffs on Chinese goods to 145 per cent, potentially disrupting Tesla's plan to start mass production of the much-anticipated models.
The truce announced on Monday (May 12) saw the US and China agree to roll back the bulk of tariffs and other countermeasures.
The source, however, added that the situation could still change, citing the Trump administration's unpredictability. They declined to be named as the matter was confidential.
Tesla did not immediately respond to a request for comment.
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Tesla aims to start trial production of the two models in October and mass production in 2026, with the Cybercab to be produced in Texas and Semi in Nevada, Reuters previously reported.
Tesla has been seeking approvals from state governments for a robotaxi service using a fleet of Cybercabs with no steering wheel or control pedals. It unveiled the concept in October and promised to start building the vehicle by 2026 at a price of less than US$30,000.
Tesla also plans to ramp up production of its Semi trucks in 2026 and accelerate deliveries of long-overdue orders to customers including PepsiCo.
Trump's tariffs, which were meant to boost US manufacturing, hurt his political ally, Tesla CEO Elon Musk, who has repeatedly voiced his support for free trade and objections to tariffs.
Last month, Musk told analysts on a first-quarter earnings call that he pushed for lower tariffs to Trump but that the decision was ultimately up to the US president.
Vaibhav Taneja, Tesla chief financial officer, told the same call that tariffs were also hurting capital investments as Tesla had to bring equipment from outside the US, particularly from China, to expand domestic production lines. REUTERS
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