00:00 Speaker A
Well Tesla shares slipping as it stops taking orders in China for two models imported from the US. The EV maker feeling the sting from the tariffs on China. Yahoo Finance’s Pras Subramanian joining us now to discuss. So Pras, obviously we’ve seen a big ripple effect from what’s going on and this uh the latest example from Tesla.
00:25 Pras
Yeah, you know you saw these retaliatory tariffs in China, 125% tariffs for US imports coming into China, which makes them not competitive, right? So for Tesla here their higher end models, the Model X and Model S EVs, both made in California, have been pulled from the Chinese market per Tesla’s website. These cars cost around $100,000 US dollars or equivalent in China and it would be it would cost double the amount if if the tariff would be placed on them, so which is untenable for them at that point. So you know Tesla sold around 2,000 of these vehicles last year so it isn’t a big mover for them, but it sort of highlights the precarious situation that Tesla and other automakers find themselves now in this post-trade war world.
01:34 Josh Lipton
And Pras, new lower priced cybertruck, my friend, is out. What are the details there, Pras, and could it help demand?
01:45 Pras
You know, Josh, I know you’re looking at a pickup truck yourself, but not saying this truck would work for you, but the long range variant is out. This is basically a truck that costs $69,000, about $10,000 less than the than the current all-wheel drive cheapest version. Basically, you’re getting, you’re getting a real-wheel drive motor, not not an all-wheel drive system. 350 miles of range is not bad, but you get less towing capacity, you get cloth seats, and no retractable tonneau cover, they call it, that goes over the back. And no useful, the outlets, the outlets in the back, in the bed, are gone. So that’s not happening either. So, you know, is it enough to move the needle? With the tax credit, you’re down to around $62,000, which is fairly competitive, but you’re you’re up against the Rivian R1T and F150 Lightning, which are very capable trucks that don’t have the Musk and Tesla brand baggage, if you will. So hard to say if this cheaper truck will help them, which according to Cox Automotive sales were halved of the cybertruck in Q1 compared to Q4. So a long way to go there for them.
03:21 Speaker A
Pras, thank you. Josh, you’re looking at a pickup truck?
03:28 Josh Lipton
I am. I’ve been talking to Pras. Well, I’m hoping Pras can maybe, you know, he knows some people. He’s a well-connected guy. That’s why I’ve been talking.
03:35 Speaker A
Get you some opinions about which ones to get. Now, I can’t wait to I can’t wait to see pictures of Josh Lipton in his new pickup truck.