Tesla Seeks Tariff Exemption for Graphite from China

On Wednesday, Tesla filed three public comments to the US Trade Representative (USTR) requesting waivers for tariffs on graphite from China.

Accordingly, the electric vehicle maker explained that these are essential to make the anode component of lithium-ion batteries in its cars. 

In addition, it emphasized that only mainland China could provide the quantity of graphite it needed. 

Tesla further concluded that no firm in the United States could produce artificial graphite in line with the required specifications.

Consequently, battery giant SK Innovation also supported an expanded exemption for tariffs on graphite.

It explained that an extended exclusion would allow SK to build high-standard electric vehicle components at competitive prices.

The tariff waiver will also lead to creating full-time jobs that support American families.

Moreover, the exclusions will benefit its $11.40 billion joint venture with carmaker Ford and a $2.54 billion investment in Georgia. 

Publications cited that a hybrid electric vehicle uses around 10 kilograms of graphite. Then, the average full EV utilities about 100 kilograms. 

Accordingly, auto industry players Toyota, Magna and AutoZone also request waivers to get out of paying tariffs. 

They ask for exemptions on electric motors, printed circuit boards, axles, and other raw materials. 

Remarkably, supply chain constraints and rising prices inflicted the production of automobile firms.  

Last October, the USTR mentioned that it would consider reinstating tariff exemptions on a case-by-case basis, which is mainly for imports from China.

Furthermore, Tesla’s three comments are along with the 2024 entries filed since October.

Eventually, the outpouring of industry appeal could press the United States government.

In the stated case, the Biden administration could reinstate government waivers on 25.00% tariffs on artificial graphite imported from China. 

Elon Musk Sells Tesla Shares worth $1.01B

Meanwhile, regulatory filings on Thursday showed that Tesla CEO Elon Musk offloaded another 934,091 shares of the EV maker worth $1.01 billion.

This move meets Musk’s tax obligations and exercises more options to buy 2.10 million shares.

Last month, the CEO posted on Twitter that he would sell 10.00% of his stock if users of the social media platform approved. Subsequently, the majority of his followers agreed with the sale.

Additionally, since November 02, he has exercised options to buy 10.70 million shares. He also sold 10.10 million shares with a value of $10.90 billion.

Regardless, he still has an option to purchase about 10 million more shares at $6.24 each, which expires in August 2022.

Tesla Inc. stock price edged down 0.98% or 10.61 points to $1,073.99 per share in Thursday’s after-hours trading.