Tesla’s Cybercab and Semi sourcing disrupted by Trump’s tariffs, report says
A new report claims that President Trump’s tariffs have disrupted Tesla’s plan to source parts for the upcoming Cybercab and Tesla Semi production in China.
The trade war started by President Trump and his constantly changing tariffs has thrown a wrench in the plans of most supply chain managers worldwide.
Tesla is no exception.
For most of its manufacturing programs in the US, the American automaker imports a significant number of parts from China, Mexico, Canada, and Europe.
This includes its upcoming vehicles: Cybercab and Tesla Semi.
Tesla aims to start production of the vehicles at Gigafactory Texas and a new factory in Nevada later this year and ramp up to volume production in 2026.
Reuters reports that Tesla has suspended plans to source certain parts for the upcoming Cybercab and Tesla Semi from China:
Tesla’s plans to ship components from China for Cybercab and Semi electric trucks in the United States were suspended after President Donald Trump raised tariffs on Chinese goods amid a trade war, said a person with direct knowledge.
According to the report, Tesla was ready to move ahead with the plan when Trump first increased the tariffs on China to 34%, but the automaker is suspending the specific sourcing plans after the most recent increases:
Tesla was ready to absorb the additional costs when Trump imposed the 34% tariff on Chinese goods but could not do so when the tariff went beyond that, leaving shipping plans suspended, said the person, who declined to be named as the matter is private.
Trump raised the tariffs on China to 145% last week, with some expectations announced on Friday — even though Trump later claimed there were no exceptions.
In response to the tariffs the US is imposing on China, the Chinese government reciprocated with its own tariffs on US goods, which resulted in Tesla stopping taking new orders for Model S and Model X vehicles in the country.
Electrek’s Take
I would take the report with a grain of salt since it is based on a single source, but it certainly makes sense.
The phrase “Trump’s tariffs have disrupted” could be followed by the name of virtually every major manufacturing company globally, and Tesla is no exception.
Due to Tesla’s vertical integration, Tesla shareholders have been claiming that the tariffs would be positive for Tesla, or at least not as bad as they would be for other automakers.
Tesla indeed has impressive vertical integration for the auto industry, but that’s in relative terms. Effectively, Tesla still uses a significant number of parts from other countries, especially Mexico, but also from China.
Mexico would be the most problematic for Tesla, as roughly 25% of the parts of all its vehicle programs built in the US originate from there.
The tariffs on auto parts from Canada and Mexico are currently paused for everything in the USMCA agreement, but Trump signaled that this is only temporary.
As for the tariffs on China, they primarily affect Tesla’s energy business, which relies on cheap Chinese battery cells, but Tesla also imports some Chinese parts for its cars and 145% tariffs will change that.
Tesla, like many other companies, has to start looking for alternatives.
Many of the problems come not only from the excessively high tariffs Trump is imposing on countries, but also from the fact that he keeps changing his mind and making exceptions, making it hard for companies to plan.
In this case, Tesla might have suspended plans with Chinese suppliers only to wait and see if Trump will back off the Chinese tariffs, if Musk can lobby for an exception with the President, whom he helped elect with $250 million in political donations, to shop for suppliers from other countries, or maybe, just maybe, do what Trumps claims his tariffs will do and manufacture those parts in the US.
For some reason, I have doubts about it being the last one, but you never know.
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Hyundai offered a first look at the hot hatch earlier this week after unveiling the Concept Three, its first compact EV under the IONIQ family. The new EV, set to arrive as the IONIQ 3, already has a sporty, hot hatch look, but that could be just the start.
Hyundai has a new EV hot hatch in the making
The Concept Three took the spotlight at IAA Mobility in Munich with a daring new look from Hyundai. Based on its new “Art of Steel” design, the concept is a stark contrast to the Hyundai vehicles on the road today.
Hyundai took the “Aero Hatch” design to the next level, deeming it “a new typology that reimagines the compact EV silhouette.” And that it does.
When it arrives in production form in mid-2026, it’s expected to take the IONIQ 3 name as a smaller, more affordable sibling to the IONIQ 5.
Hyundai is set to unveil the electric hatchback next spring with an official launch planned in Europe in September 2026. According to Hyundai’s European boss, Xavier Martinet, the IONIQ 3 could make for the perfect EV hot hatch.
Martinet hinted that the IONIQ 3 could receive the “N” treatment, telling Auto Express that “The concept is quite sporty, and obviously you have heritage with N brand.” Hyundai’s European boss added that “it’s a fair topic to consider.”
Although it doesn’t sound too convincing, Hyundai’s head of design, Simon Loasby, called it “an opportunity.” Loasby was quick to add, “We’re not calling it N, it’s not approved yet.”
“But I think everyone in the company is realising what Europe needs, and that’s compact hot hatches, so it’s a topic for discussion,” Hyundai’s design boss added.
The Concept Three is 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, or about the size of the Kia EV3 and Volkswagen ID.3. Both of which are set for hot hatch variants.
If the IONIQ 3 N does come to life, it will be the third Hyundai EV to receive the high-performance upgrade, following the IONIQ 5 N and IONIQ 6 N.
The IONIQ 5 N “was just the first lap,” according to Joon Park, vice president of Hyundai’s N Brand Management Group. He told Auto Express that Hyundai is “at the starting line” and plans to apply what it learned from its first EV hot hatch to upcoming models.
If you’re looking for an affordable electric hot hatch, Hyundai already offers one. After Hyundai cut lease prices last month, the IONIQ 5 N is now listed at just $549 per month. That’s $150 less per month than in July.
Want to test one out for yourself? You can use our link to find 2025 Hyundai IONIQ 5 models in your area (trusted affiliate link).
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The global wind industry is going to hit some unprecedented growth milestones, according to Wood Mackenzie’s Global Wind Power Market Outlook for Q3 2025. The world is on track to add its second terawatt of wind capacity by 2030. To put that in perspective, it took 23 years to install the first terawatt, which was reached in 2023. The second will come in just seven.
Wind is also set for a record-breaking year in 2025. Global additions are expected to reach 170 gigawatts (GW), with more than 70 GW coming online in the last quarter of the year alone. That means Q4 could add more capacity than the total installed in any full year before 2020.
This forecast represents a 13% jump from the previous quarter, primarily driven by explosive onshore growth in China. Global wind capacity is expected to double from 2024 levels by 2032. Outside of China, the industry is also expanding, though on a slower path. Excluding China, the world will reach 1 terawatt in 2031 and double 2024 capacity by 2034.
However, policy uncertainty and the Trump administration’s hostility toward the wind industry, particularly offshore wind, are negatively impacting the US market. Trump’s big bill act (OBBBA), passed in July 2025, ends tax credits after 2027. That’s sparked a rush of projects in the short term, but it drags down the long-term outlook. For the first time, the US has fallen behind India and Germany in forecasted 10-year additions.
“China’s dominance in the wind industry is becoming more pronounced,” said Sasha Bond-Smith, research analyst at Wood Mackenzie. “While other established markets struggle with policy uncertainty and economic headwinds, we’re witnessing an unequalled concentration of growth in China that’s reshaping the industry landscape.”
China’s onshore forecast jumped this quarter thanks to rising electricity demand from data centers and electrification. Wind is proving more profitable than solar in liberalized power markets, but China’s offshore wind sector is facing challenges. Sea-use conflicts are slowing or even halting projects already under construction.
Despite those hurdles, Wood Mackenzie now projects that wind could match solar’s power output in China over the forecast period. That would cement wind’s central role in helping the country meet climate goals while keeping up with surging power demand.
Elsewhere, onshore wind remains steady across Europe, Asia Pacific, and emerging markets, with tender results and pipelines supporting progress. Offshore wind is struggling, though. High costs and failed tenders are creating setbacks in Europe and delays in emerging markets. Policymakers are under pressure to rethink contract structures to keep projects moving.
“The wind industry’s most significant transformation in decades continues to unfold,” said Kárys Prado, senior research analyst at Wood Mackenzie. “While achieving historic scale, success will depend on how effectively the industry navigates this new geography of growth and adapts to evolving policy landscapes.”
Read more: FERC: Solar + wind made up 91% of new US power generating capacity in H1 2025
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla unveiling its new Megablock product, bunch of new EVs at IAA, the debacle at Hyundai’s plant, and more
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