Tesla incurred $400 million in tariff costs during the third quarter, CFO Vaibhav Taneja said on the earnings call.
Those costs were roughly split between the company’s automotive and energy businesses. But Taneja noted that the energy business feels the tariff impact to a greater degree relative to the cost of goods sold for that unit.
The energy business relies on cells that are procured from China, though Tesla is exploring alternatives. For now, the company has been able to benefit from its operation of a Shanghai factory that can serve non-U.S. markets without incurring tariff impacts.
