Tesla Faces Production Cuts and Trade Tensions Amid Shifting EV Market

Elon Musk sidesteps commitment to cheaper EVs as China threatens tariffs and Tesla reduces output in Shanghai.

Tesla's Shanghai factory saw a 33% year-over-year production drop in April, primarily affecting the Model Y.
Elon Musk avoided questions on cheaper EVs and Tesla's recent struggles during the VivaTech conference.
China is threatening up to 25% tariffs on vehicle imports in response to U.S. and EU trade actions.
Tesla's sales in China dropped 18% year-over-year last month, prompting a leadership reshuffle.
The Biden administration's new tariffs on Chinese EVs could escalate trade tensions further.