Tesla's stock is under scrutiny as the United States and China ease trade tariffs. The recent agreement involves the U.S. reducing tariffs on Chinese goods to 30%, while China lowers tariffs on U.S. goods to 10%. This truce aims to de-escalate trade tensions and foster continued economic cooperation.
However, a hefty 30% tariff remains in place, and economists predict merchants will pass import taxes on to consumers, meaning the tariffs could push up the cost of living and risk reigniting high inflation.
Tesla's China Performance
Tesla's sales in China have shown mixed results. In April 2025, Tesla sold 28,731 cars in China, reflecting an 8.6% year-on-year decrease. Despite this, the Chinese market remains crucial for Tesla, with its Shanghai factory being a major production hub. Competition from domestic EV brands is intensifying, impacting Tesla's market share.
Robotaxi Service Launch
Tesla is moving forward with its robotaxi service, expected to launch in June 2025 in Austin, Texas. The service will initially operate with a small fleet of Model Y vehicles. Tesla has been testing the robotaxi service with employees in Austin and San Francisco, accumulating over 1,500 trips and 15,000 miles.
The robotaxis will initially have supervised operation, with a human in the driver's seat. Remote operators might be used as safety drivers when the service is available to consumers.