CNN - Tesla’s caught in a trade war trap. Blame Musk

Analysis by Chris Isidore, CNN
Published 5:30 AM EDT, Mon April 21, 2025

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On Tuesday, Tesla reports earnings; that afternoon, Musk will take questions from investors. But there is a catch-22: If Musk continues his close ties to Trump, the company could alienate potential customers, both at home and overseas, who dislike Trump’s policies. If he distances himself from Trump, though, he risks the ire of the White House. It’s a lose-lose situation, and it’s a trap of Musk’s own making.

The first quarter saw the company’s largest drop in sales after virtually nonstop double-digit sales growth. But the automaker’s finances are only part of what of what investors will want to know.

• They will want to know how much the Trump administration’s 25% tariffs on all imported vehicles are costing Tesla and what Musk thinks about them.
• They will want to know when Musk intends to step back from Department of Government Efficiency, or DOGE, in Washington, and focus on fixing the problems at Tesla.
• They will want to see progress on self-driving cars, a Robotaxi fleet, a less expensive new Tesla model and plans to sell humanoid robots.

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