Recent statements by US Commerce Secretary Howard Lutnick reveal that vehicles finished in the US with at least 85% domestic content will avoid tariffs. This policy change greatly favors Tesla, as it has consistently achieved high domestic content ratings. Notably, the Tesla Model Y and Model 3 Performance have scored 85% or higher on domestic content, securing Tesla a key competitive advantage in the US auto market, especially amid the tariffs imposed on foreign manufacturers.
According to US Commerce Secretary Howard Lutnick, vehicles with 85% domestic content will face no tariffs, benefiting Tesla significantly in the US market.
Lutnick emphasized that a focus on American manufacturing will provide automakers with a competitive edge, especially benefiting those meeting the 85% threshold.
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