How much prices Tesla could increase after Trump’s tariffs?

The Trump administration has announced reciprocal tariffs on many countries that could also impact Tesla prices across the region and around the world.

Trump’s announcement about the tariffs includes 180 countries and territories, along with a 10% baseline tariff for countries that are not officially part of the reciprocal tariff list.

Separately, the Trump administration has launched upto 25% duty on auto imports including passenger vehicles and light trucks as well as other key parts including transmissions, engines, and powertrain components.

Simply put, all cars made outside the US, imported to the US will have to pay this duty including their parts. It is expected that the prices could go up to $15,000 per vehicle based on how much the vehicle is produced outside.

However, the cars made on foreign soil will be applicable for USMCA — United States, Mexico, Canada Agreement. That said, any car made in these countries will only face tariff for non-U.S. components. Such auto parts will be tariff-free until the Trump administration finds a way to charge them as well.

Meanwhile, Tesla produces its vehicles at Fremont Factory and Giga Texas. It is also working an expansion of the Giga factory to produce Tesla Semi trucks locally. The company also produces vehicles in China and Germany, but those aren’t imported to the US.

Some industry analysts believe that Tesla will emerge as the top beneficiary of this policy due to its highly localized supply chain, with more than 60% localized components.

Therefore, the EV maker is also not safe from tariffs and Tesla CEO, Elon Musk also reacted pretty much agrees to this point.

“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant” wrote Musk on X.

That’s due to the fact it also imports parts from other markets that aren’t available in the US.

Goldman analyst Mark Delaney says that a locally produced vehicles would see a price increase due to imported parts that could go up to $8,000.

Deutsche Bank forecasts that Tesla prices would need a 1.8% increase to offset the costs of the tariffs. This cost will be much higher for GM, Ford and other vehicle makers importing from Mexico.

Rivian and Lucid also produce their vehicles directly in the US. Those will also be exempted from the import duties, but foreign parts in their supply chain are currently unknown.

For now, it’s hard to tell how much of the price tags will hike on Tesla vehicles but as Musk said, these vehicles won’t be unscathed.