Tesla CEO Elon Musk on Thursday said he opposes the U.S. government's move to levy 100% tariffs on Chinese electric vehicles—announced by the Biden administration last week—in a change of tone from remarks he made earlier this year when he warned about the threat Chinese EV companies posed to global car makers without trade barriers.
Elon Musk said neither he or his company Tesla had asked for the tariffs on Chinese EVs
Addressing the Vivatech conference in Paris via video link, Musk said that “neither Tesla nor I asked for these tariffs” and he was surprised when it was announced.
The billionaire said Tesla “competes quite well” in the Chinese market and said he generally favored no tariffs and no tax incentives for EVs or gas-powered vehicles.
Musk added, “Things that inhibit freedom of exchange or distort the market are not good.”
When asked if the tariffs were a green light for Tesla to push forward with a low-cost model and if there was a timeline for it, Musk refused to divulge any details noting he dislikes answering questions that would directly impact the company’s stock price.
Musk’s latest remarks were a departure from the warnings he had issued about Chinese EVs earlier this year where he appeared to call for government intervention. In Tesla’s earnings call in January, Musk said Chinese EV makers were the “most competitive car companies in the world” and he believed they would have “significant success” globally “depending on what kind of tariffs or trade barriers are established.” The Tesla CEO then warned that “if there are no trade barriers established, they will pretty much demolish most other companies in the world.”