Tesla (TSLA, Financials) hit pause on plans to ship Chinese-made parts for its Cybercab and Semi trucks after U.S. tariffs on Chinese goods surged to 145%, according to Reuters.
The EV maker had aimed to kick off trial production of both vehicles later this year, with full-scale manufacturing expected in 2026. But the rising costs from tariff hikes—jumping from 34% to 84% on April 9 and now at 125%—have forced Tesla to shelve shipments, a source told Reuters.
The delay puts a dent in two major launches for Tesla. The Cybercab, a steering-wheel-free robotaxi, was expected to cost under $30,000. The Semi was being prepped for large commercial deliveries, including to PepsiCo (PEP, Financials).
Tesla had been shifting toward more North American sourcing, anticipating trade tensions. Still, key components for both vehicles were coming from China.
Reuters also reported that Tesla has stopped taking new orders for its Model S and Model X in China after Beijing responded with its own 125% tariff on U.S. goods.
Trump, meanwhile, has hinted at revisiting other auto-related tariffs and said automakers will need time to “make 'em here,” Reuters reported. Musk, a vocal critic of tariffs, has urged Trump to reverse course.
