Hello from California, this is Yifan, your #techAsia host this week.
Tariffs and Tesla’s Turbulence
Yesterday was "Liberation Day" in the US, the day President Donald Trump announced a barrage of reciprocal tariffs on China, Japan, the EU and other trade partners, allies and foes alike. Meanwhile, his 25 per cent additional levies on auto imports will partially kick in on Thursday.
Trump said the tariffs will rebalance US trade relations and reduce the deficit, but his "First Buddy" Elon Musk might be the first in line to get hurt by rising trade barriers.
Musk’s Tesla has become a political symbol as the tech billionaire spearheads the so-called Department of Government Efficiency (Doge), a Trump White House task force involved in firing tens of thousands of federal workers in a push to drastically shrink the government and improve its spending efficiency. Protests against Tesla have been held across the globe and Tesla’s stock has been in free fall this year.
In the San Francisco Bay Area — the former home of Tesla headquarters and the first place in the US to embrace EVs — I’ve seen several Teslas driving down Highway 101 with their T-shaped logo removed.
Trump’s new tariffs are expected to add further headwinds for the company, particularly in its home market. While the California gigafactory might be where most of its US vehicles are finished and shipped, its auto parts supply chain will still be subject to the additional levies. Tesla shares dropped more than 8 per cent during extended trading Wednesday following the tariff announcement.
Tesla’s Turmoil and BYD’s Boom
2025 has started quite differently for BYD and Tesla. The two carmakers have been in a neck-and-neck race for the global EV crown since 2023. While both are facing headwinds, including intensifying competition, weakening economies, slowing demand and tariffs, Elon Musk is throwing a wrench in the works for Tesla.
China’s BYD has outsold Tesla in electric vehicles for a second straight quarter as the US automaker faces a backlash over CEO Elon Musk’s political activities, Nikkei Asia’s Yifan Yu reports.
For the January-March period, Tesla delivered 336,681 vehicles worldwide, down around 13 per cent compared to the same period last year. BYD, meanwhile, delivered 416,388 battery electric vehicles (BEVs) in the first three months of 2025, up 38.74 per cent year-on-year.
The Road to Profitability
Chinese autonomous driving company WeRide has said it hopes to become profitable within five years but warned that uncertainty over international government regulation and commercial partnerships make the timing "difficult to predict", write the Financial Times’ William Langley and Gloria Li.
Tony Han, founder and chief executive of the Nasdaq-listed company, said autonomous driving required huge investment and generating returns would be a "long process". The Nvidia-backed company has reported higher losses in each of the past three years.
Big to Bigger?
US contract chipmaker GlobalFoundries and United Microelectronics Corp, Taiwan’s No 2 chipmaker, are exploring the possibility of a merger amid American efforts to mitigate risks surrounding the Taiwan Strait and fend off growing competition from China in mature chips, Nikkei Asia’s Cheng Ting-Fang writes.
The tie-up would create a bigger, US-based company with a production footprint across Asia, the US and Europe. The aim of the merger would be to create a company with the economic scale to ensure America has access to mature chips as tensions simmer between China and Taiwan and as China produces more chips on its own.
Humanoids with Chinese Characteristics
Did you see the viral video in which a group of humanoid robots dance alongside human performers on Chinese state broadcaster CCTV’s Lunar New Year Gala in January? The robots might have looked a bit funny, awkwardly waving handkerchiefs up and down, but they have become a treasured priority for Beijing, Nikkei Asia’s Cissy Zhou and Ryohtaroh Satoh write.
Similar to EVs and smartphones, China’s government policies have prioritised humanoid robots as "disruptive products", with the market expected to reach $43bn by 2035.
Conclusion
The article highlights the impact of Trump’s tariffs on Tesla, the electric vehicle company led by Elon Musk, and how it may affect the company’s profitability. Additionally, it discusses the growth of BYD, a Chinese electric vehicle manufacturer, and the challenges faced by WeRide, a Chinese autonomous driving company, in achieving profitability. The article also touches on the potential merger between GlobalFoundries and United Microelectronics Corp, and the growth of humanoid robots in China.
FAQs
Q: What is the impact of Trump’s tariffs on Tesla?
A: The tariffs are expected to add further headwinds for Tesla, particularly in its home market, as its auto parts supply chain will still be subject to the additional levies.
Q: Which company has outsold Tesla in electric vehicles?
A: BYD has outsold Tesla in electric vehicles for a second straight quarter.
Q: When does WeRide expect to become profitable?
A: WeRide hopes to become profitable within five years, but warned that uncertainty over international government regulation and commercial partnerships make the timing "difficult to predict".
Q: What is the potential merger between GlobalFoundries and United Microelectronics Corp?
A: The merger would create a bigger, US-based company with a production footprint across Asia, the US and Europe, and would aim to ensure America has access to mature chips as tensions simmer between China and Taiwan and as China produces more chips on its own.
