Elon Musk's Struggles with Tariffs, Anti-Tesla Vandalism, and the Surprising Return of Trevor Milton

In today’s episode, we delve into the ongoing challenges Elon Musk faces across various fronts, from tariffs impacting Tesla’s production costs to anti-Tesla vandalism, and the unexpected comeback of Trevor Milton. Musk’s business empire is facing significant hurdles at the worst possible time, but there are some surprising twists in this chaotic narrative. Let’s break it all down.

Tariffs and the Impact on Tesla’s Bottom Line

The 25% Tariff on Imported Cars

In a move that has added complications for Elon Musk’s Tesla, former U.S. President Donald Trump has introduced a new tariff plan. Trump has announced a 25% tariff on all cars and certain auto parts imported into the United States. While there may be long-term benefits for Tesla, Musk has expressed concern about short-term complications for the company. This tariff plan could potentially increase the price of vehicles in the U.S. by $3,000 on average, with some models even seeing price hikes of up to $10,000.

Tesla’s Response to the Tariff

Tesla has long prided itself on being one of the most American-made vehicles, particularly with its Model 3. However, the car is not made entirely of U.S.-sourced parts. According to Tesla, some components of the Model 3 are sourced from countries outside the U.S., particularly from Asia, including China. Despite aggressive efforts to localize their supply chain, certain parts remain difficult or impossible to source within the United States. This has been highlighted in a letter Tesla sent to the U.S. Trade Representative, urging them to consider the downstream impacts of the proposed tariffs.

Musk himself confirmed the cost impacts of the tariffs, stating that they would have a “non-trivial” effect on the price of Tesla vehicles. The Tesla Model 3 currently sources 75% of its parts from the U.S. and Canada, but at least 20% of its parts come from Mexico, and a smaller portion from Asia, which would be subject to the new tariffs.

Potential Price Hikes Across the Industry

While Tesla will see some price increases, the tariffs are expected to hit other automakers even harder. Ford and GM, for example, are far more reliant on foreign parts. Ford’s bestselling F-150 pickup, assembled in the U.S., uses only 45% of components sourced from Canada and the U.S. This means that companies like Tesla will face a smaller price increase than their legacy competitors, making Tesla even more attractive to consumers despite rising prices across the industry.

Impact on Tesla’s Profit Margins

At a time when Tesla’s profit margins are already under pressure, these tariffs are further compounding the situation. In 2022, Tesla achieved an impressive 28% profit margin on its vehicle sales, but by the fourth quarter of 2024, that figure had fallen to just 13.6%. This decline is a troubling trend for the company, and if Tesla wants to maintain profitability, it will likely need to raise the prices of its cars. However, the larger concern is whether the rising costs of production and vehicle prices will dampen demand for Tesla’s cars, especially at a time when the competition is intensifying.

Anti-Tesla Sentiment: Vandalism and Violence

Fires and Vandalism at Tesla Dealerships

While Elon Musk and Tesla continue to battle external financial pressures, there’s another issue the company is facing: anti-Tesla violence. Just recently, a Tesla dealership in Rome, Italy, was completely destroyed by fire, along with 17 Tesla vehicles that were engulfed in flames. This was the second such incident in Italy in as many weeks. Earlier, another dealership in northern Rome also caught fire, and the initial cause was attributed to an electrical issue. However, police are still investigating the causes of these incidents, which have raised concerns about growing hostility towards Tesla.

In the United States, the situation has become even more dangerous. The government has decided to prosecute individuals accused of arson against Tesla properties as domestic terrorists. This has led to the creation of a specialized task force by the FBI to investigate and respond to Tesla-related attacks.

Recent Attack on a Tesla Service Center

In Las Vegas, a man was arrested in connection with a firebombing of a Tesla service center on March 18th, 2025. The suspect, a 36-year-old man, allegedly used Molotov cocktails and firearms in his attack. While police were quick to make an arrest, the incident highlights the continuing threat of anti-Tesla violence in the U.S.

Musk’s Reflections on the Situation

Elon Musk has expressed his frustration with the growing hostility towards his company. In a recent interview with Fox News, Musk stated, “My companies are suffering because I’m in the government. Do you think it helps sales if dealerships are being firebombed? Of course not! Tesla customers are being intimidated all over the country and all over Europe. Does that help Tesla?” Musk’s statement underscores the difficulties Tesla faces, not only from a competitive standpoint but also from the threat of violence and intimidation against its customers and properties.

Trevor Milton’s Surprising Pardon

In a shocking development, Trevor Milton, the disgraced founder of Nikola Motors, has been granted a full pardon by President Donald Trump. Milton, who was convicted of defrauding investors out of hundreds of millions of dollars, had been sentenced to prison in December 2023. However, the recent pardon has sparked outrage and confusion, especially given Milton’s criminal history.

Why Was Trevor Milton Pardoned?

The decision to pardon Trevor Milton has raised many eyebrows. In a press conference, President Trump explained that the pardon was “highly recommended by many people” and that Milton had been “highly taken advantage of” during his business dealings. It was further revealed that Brad Bondi, the attorney representing Milton during his trial, is the brother of Pam Bondi, Trump’s current Attorney General. Many speculate that this connection played a key role in securing Milton’s pardon.

Additionally, Milton and his wife had donated more than $1.8 million to Trump’s re-election campaign just before the November election. While this might seem coincidental, many are questioning whether there was a connection between these donations and the pardon.

Milton’s Reaction to the Pardon

In an emotional video posted to his Ex account (formerly Twitter), Milton expressed his relief and gratitude. Filming the video from his car, he declared, “I am free. The prosecutors can no longer hurt me. They can’t destroy my family. They can’t rip everything away from me. They can’t ruin my life.” The video, filmed immediately after receiving the pardon, shows Milton clearly overwhelmed with emotion.

While the pardon has sparked controversy, it’s clear that the decision has had a significant impact on Milton’s life, effectively wiping the slate clean and allowing him to continue his career outside of prison.

The Sale of X (Twitter) and Elon Musk’s Vision for the Future

Elon Musk’s $33 Billion Deal for X

In a move that further intertwines his tech empire, Elon Musk has sold his social media platform, X (formerly Twitter), for $33 billion. The buyer? X AI, Musk’s artificial intelligence company. This deal values X at approximately $45 billion, which is $1 billion more than what Musk originally paid for Twitter in October 2022. However, after factoring in the company’s $12 billion debt, the net value of the deal is closer to $32 billion.

X AI’s Growing Influence

Since its inception, X AI has grown rapidly to become one of the world’s leading AI labs. The company has built its first language models and data centers at an unprecedented pace. Musk’s vision for the future of X and X AI is clear: to combine the power of artificial intelligence with the massive reach of the X platform to unlock new possibilities. Musk wrote, “XAI and X’s futures are intertwined. Today, we officially take the step to combine the data models, compute distribution, and talent. This combination will unlock immense potential by blending XAI’s advanced AI capabilities with X’s massive reach.“

A New Era for X and AI Integration

This integration of AI and social media represents a new frontier in the development of technology and media. With X AI’s upcoming data center in Atlanta, Georgia, set to play a key role in managing the X platform, this merger is poised to have a significant impact on the future of both social media and artificial intelligence.

Conclusion

In conclusion, Elon Musk’s empire is facing a series of tough challenges, from the financial impact of new tariffs on Tesla, to the threat of violence against the company, and the surprising pardon of Trevor Milton. These events highlight the complex landscape Musk must navigate as he works to maintain Tesla’s leadership in the electric vehicle industry, while also managing the volatility of his social media platform, X. It’s clear that Musk’s influence on the future of technology and business is profound, but it’s also clear that he’s facing difficult times that will test the strength of his ventures.

FAQs

1. What are the new tariffs on Tesla cars?

The new tariff, introduced by former President Donald Trump, imposes a 25% tariff on all cars and certain auto parts imported into the United States. This will affect the cost of parts used in Tesla vehicles, as not all components are sourced from the U.S. or Canada. Tesla has expressed concern that this could raise production costs and vehicle prices.

2. How will the tariffs impact Tesla’s vehicle prices?

The tariffs could raise the price of an average Tesla vehicle by around $3,000, with some models potentially seeing price increases of up to $10,000. Tesla’s Model 3 and Model Y are expected to be particularly affected due to the sourcing of certain parts from countries outside of the U.S. and Canada.

3. What is the significance of the anti-Tesla vandalism incidents?

Tesla has recently faced a disturbing trend of anti-Tesla vandalism, including fires at dealerships in Italy and attacks on Tesla service centers in the U.S. These incidents have raised concerns about growing hostility toward the brand and its customers, prompting the FBI to establish a task force to handle Tesla-related attacks.

4. Why was Trevor Milton pardoned by Donald Trump?

Trevor Milton, the founder of Nikola Motors, was granted a full pardon by former President Donald Trump in March 2025 after being convicted of defrauding investors. The pardon followed recommendations from individuals associated with Milton’s legal representation, and some speculated that his prior $1.8 million donation to Trump’s re-election campaign may have played a role in the decision.

5. What is the future of Elon Musk’s social media platform X?

Elon Musk recently sold X (formerly Twitter) for $33 billion to his artificial intelligence company, X AI. This deal aims to integrate the social media platform with X AI’s advanced AI capabilities, marking a significant step in combining AI with social media to unlock new potential. This merger is expected to have a major impact on both industries.

Elon Musk’s Struggles with Tariffs, Anti-Tesla Vandalism, and the Surprising Return of Trevor Milton