Tesla Set to Benefit from Trump's 25% Tariffs on Imported Cars

Reese Morgan

Reese Morgan

March 28, 2025 · 4 min read
Tesla Set to Benefit from Trump's 25% Tariffs on Imported Cars

In a move that is likely to have significant implications for the automotive industry, President Trump has imposed 25% tariffs on all cars imported to the United States, including those from Mexico and Canada. The tariffs, which also apply to certain parts used to build cars, are expected to increase the cost of new and used cars. However, one company that stands to benefit from this decision is Tesla, led by Elon Musk, who was a significant supporter of Trump during his presidential election campaign.

The tariffs are seen as a gift to Tesla, which is the only major American electric vehicle (EV) manufacturer. With the increased costs of imported cars, Tesla's products are likely to become more competitive in the market. This development comes at a time when Tesla is facing increasing competition from other EV manufacturers, including Lucid, which is reportedly eyeing partnerships to reach higher levels of autonomy.

In other news, Trevor Milton, the founder of bankrupt hydrogen trucking startup Nikola, has been pardoned by Trump. This move has raised eyebrows, given the controversy surrounding Milton's conviction for fraud. The pardon was confirmed by the White House, although it took several hours to receive confirmation.

The news also highlights the close relationship between Musk and Trump. As reported by TechCrunch, Musk's ally Trump has been a significant supporter of the entrepreneur's ventures, including SpaceX and Neuralink. The investigation into the people in Musk's DOGE universe, published by TechCrunch in February, continues to be updated and provides insight into the network of individuals working with Musk.

In other transportation news, Waymo has announced plans to offer robotaxi rides in Washington, D.C. via the Waymo One app in 2026. However, the company will need to increase its lobbying efforts in the capital, where autonomous vehicle permits still require a human behind the wheel. Meanwhile, Rivian has spun out its electric micromobility startup, Also, with $105 million in funding from Eclipse Ventures. Rivian has a minority stake in Also, and its CEO, RJ Scaringe, will serve on the board.

The week has also seen several significant deals in the transportation sector. BetterFleet, a Michigan-based company that developed EV charging fleet management software, raised $15 million in a Series A funding round. The Bot Company, a robotics startup founded by former Cruise co-founder and CEO Kyle Vogt, has raised $150 million in a round led by Greenoaks. DeCharge, an EV charging infrastructure startup, raised $2.5 million in a round led by Lemniscap.

Fleetio, a vehicle fleet software management company, raised $450 million in a round co-led by Elephant VC and Goldman Sachs Alternatives. The funds will be used to finance the purchase of maintenance-authorization platform Auto Integrate. Manna, the Dublin-based drone delivery company, raised $30 million in a round led by Tapestry VC and Molten Ventures.

Finally, TechCrunch has been acquired by private investment firm Regent, with Yahoo Holdings maintaining a small share of ownership. The acquisition, which has yet to close, comes just a few days after Regent bought Foundry, the publisher home to tech publications like PCWorld, Macworld, InfoWorld, and CIO.

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