Apr. 16, 2025, 12:16 AM According to Reuters, Tesla (TSLA) has halted the import of key components from China for its much-anticipated Cybercab and Semi electric truck projects in the U.S. The decision comes amid the escalating trade tensions between the U.S. and China after President Donald Trump’s new round of tariffs. The move could derail Tesla’s plans to begin mass production of its highly anticipated models, which CEO Elon Musk had promoted to investors as key growth drivers. Stay Ahead of the Market: Tesla Cybercab, also known as Robotaxi, is the company’s forthcoming fully autonomous electric vehicle, unveiled by Musk at the “We, Robot” event in October 2024. Tesla Faces Setbacks amid US-China Trade Turmoil The Reuters report, citing a source familiar with the matter, further stated that Tesla managed to absorb the 34% tariffs previously imposed by Trump on Chinese goods. However, the latest increases proved too costly, forcing the company to halt shipping plans. For context, Beijing faces a steep 145% tariffs on exports to the U.S., while American products entering China are hit with tariffs of up to 125%. Last month, Musk highlighted a “substantial” impact on Tesla from the tariffs. While the company manufactures all of its U.S.-sold vehicles domestically, it relies on imports for several key components, with China playing a significant role in its supply chain. Tesla’s Self-Driving Ambitions Slow Down The mounting uncertainty surrounding global supply chains has caused fresh setbacks for Tesla’s autonomous vehicle timeline. Tesla planned to begin trial production of the two models in October, with mass production set for 2026. The Cybercab was slated for production in Texas, while the Semi would be manufactured in Nevada. The delay in Tesla’s key business plans highlights how Trump’s tariffs, which are intended to bolster U.S. manufacturing, have instead hurt one of his vocal political allies, Musk. Notably, the duration of the suspension remains unclear. Meanwhile, the recent suspension aligns with Tesla’s ongoing strategy of reducing reliance on Chinese imports. Over the past two years, the company has been steadily increasing the share of parts sourced from North America for its U.S. factories, anticipating potential tariff risks, according to a source. Is TSLA a Buy Stock? The suspension comes when the EV maker is already grappling with declining sales, driven by an ageing product lineup, intense competition from Chinese manufacturers, and growing backlash against Musk in key markets. Year-to-date, TSLA stock has declined by over 35%. Consequently, Wall Street analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 11 Holds, and 11 Sells assigned in the last three months. The average price target for Tesla shares is $305.93, suggesting a potential upside of 20.4% from the current level.