Tesla Asks US To Waive Off Tariff On China Imported Materials For EV Production

Tesla Inc TSLA has sought waivers for tariffs imposed on material imported to the United States from China, CNBC reported on Thursday, citing the electric vehicle maker’s public comments. 

What Happened: Elon Musk-led Tesla has sought a waiver for artificial graphite, a key ingredient used to make lithium-ion batteries. The Musk-led company said only Mainland China could supply as many volumes as needed to make the batteries in the United States.

South Korea’s SK Innovation, which supplies batteries to Volkswagen Group VWAGY and Ford Motor Co F, too has sought an extended waiver via its U.S. subsidiary.

The companies have filed their comments with the office of the United States Trade Representatives, the deadline for which ended on Wednesday. 

See Also: Ford Supplier SK Innovation To Split Battery Business

Why It Matters: Tesla and SK Innovation are among many other auto companies asking the U.S. Trade Representative for extended tariff waivers on parts and materials imported from China that go in making electric cars.

Tariffs added to automakers’ other woes, including the soaring vehicle prices due to lingering supply chain issues and delayed deliveries due to semiconductor shortages. 

The U.S. trade body had in October said that it would consider reinstating tariff exclusions for imports that can only be obtained from China. 

Price Action: Tesla shares traded 0.50% higher at $1,089.99 premarket on the last check Friday. 

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