Tesla Inc.‘s TSLA global export strategy faces mounting pressure from rising trade tensions and persistently high interest rates, according to prominent Tesla investor Gary Black.
What Happened: Black, Managing Partner at The Future Fund LLC, warned on Sunday that elevated long-term interest rates continue to weigh on auto sales across the industry, affecting major manufacturers including Tesla, General Motors Co. GM, Ford Motor Co. F, Stellantis N.V. STLA, and Rivian Automotive Inc. RIVN.
The warning comes as President Donald Trump implements aggressive trade measures, including 25% tariffs on Canadian and Mexican imports effective Feb. 1. These actions have sparked concerns about retaliatory measures that could disrupt global automotive trade.
According to data from Troy Teslike cited by Black, Tesla exported 323,499 vehicles in 2024, representing 18.1% of its total 1.79 million deliveries. The company’s Shanghai factory led export operations, shipping 246,910 units overseas, while U.S. facilities exported 49,747 vehicles and the Berlin plant sent 26,842 units abroad.
“That is the volume at risk if Trump’s tariffs develop into a full-scale retaliatory trade war similar to what happened globally in the 1930s,” Black said.
In the 1930s, the world experienced the Great Depression, a severe global economic downturn that lasted from 1929 to the early 1940s. One of the key events that worsened the economic crisis was the rise of protectionist trade policies, most notably the Smoot-Hawley Tariff Act of 1930 in the United States.
Why It Matters: The export concerns emerge against a backdrop of steady U.S. interest rates, with the Federal Reserve maintaining its target range at 4.25% to 4.5% after ending a series of rate cuts that began in September. Treasury yields, while declining from late-2024 peaks, remain elevated compared to levels seen when the Fed began easing policy.
The combination of trade tensions and high borrowing costs poses a dual challenge for automakers as they navigate an increasingly complex global market environment.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
