Technology
Tesla To Resume Shipping Components From China To US Following Trade Truce
Tesla has planned to resume shipping components from China to the US for the production of its Cybercab and Semi trucks from the end of this month, following a trade truce between the US and China, according to a source familiar with the matter.
The decision, reported exclusively by Reuters, highlights the immediate impact of the trade war de-escalation between the world’s two largest economies. The breakthrough follows talks held in Geneva over the weekend.
Last month, Tesla had suspended plans to ship components after US President Donald Trump raised tariffs on Chinese goods to 145%, which risked delaying mass production of the much-anticipated models. However, the agreement reached on Monday saw both nations agree to roll back the majority of tariffs and other retaliatory measures.
The source, who spoke on condition of anonymity due to the confidential nature of the discussions, cautioned that the situation could still change, given the unpredictability of the Trump administration. Tesla has not yet responded to requests for comment.
The electric vehicle manufacturer aims to start trial production of the Cybercab and Semi models in October, with mass production scheduled for 2026.
The Cybercab will be produced in Texas and the Semi in Nevada, according to earlier reports. Tesla also plans to ramp up production of its Semi trucks in 2026 and fulfil long-overdue orders for customers, including PepsiCo.
Tesla has been pursuing regulatory approvals for a robotaxi service using a fleet of Cybercabs without steering wheels or control pedals. The concept was unveiled last October, with plans to begin manufacturing the vehicle by 2026 at a price of under \$30,000.
The trade dispute has posed challenges for Tesla, as higher tariffs have impacted capital investments. Vaibhav Taneja, Tesla’s chief financial officer, noted that importing equipment from China to expand US production lines had become more costly.
President Trump had previously argued that the tariffs would bolster US manufacturing. However, Tesla CEO Elon Musk, a known advocate for free trade, has expressed concerns, saying he urged Trump to lower tariffs during a first-quarter earnings call, but the final decision rested with the President.
