In January, Tesla CEO Elon Musk insisted that US tariffs were needed against China. Yet Musk, with a tendency to vacillate on key company positions, told participants at the Viva Technology conference in Paris this week that he opposed US tariffs on Chinese electric vehicles because they were part of measures that distort the market.
The comments emerged as US President Joe Biden quadrupled US tariffs on EVs and other Chinese imports, to the tune of about $18 billion. In its statement announcing the tariff changes, the White House stated that Chinese exports of EVs grew 70% between 2022 and 2023, running the risk of stifling investment into US EV manufacturing.
Musk, as CEO of a publicly-traded company, wields significant power over the company’s direction and performance. The CEO’s influence on stock performance doesn’t exist in isolation — it’s often amplified or diminished byTesla shares have been in decline over the last year as it struggles to spur EV demand and manage pricing. Musk’s inability to lead the company robustly and consistently has damaged its overall valuation.
His constantly shifting focus now has landed on the robotaxi, which to many investors points to an uncertain technological future. That is athat Tesla expects to start production of the new model in the second half of 2025 at its factory in Austin, Texas. It would be built in a new factory in Mexico and then another new factory outside North America. For many years, Tesla’s lofty stock valuation has been pumped up by people’s expectations about Musk.